U.S. Nonfarm Payroll Increases by 678,000 in February; Unemployment Edges Lower to 3.8%

The U.S. Bureau of Labor Statistics (BLS) reported today (3-4-22) that total nonfarm payroll employment increased by 678,000 in February, following increases of 467,000 in January and 199,000 in December. Even with February’s gains, nonfarm payroll employment is still down by -1.4 million, or -1.4%, from its pre-pandemic level in February 2020.

Job growth was widespread in February, with notable job growth occurring in leisure and hospitality (+ 179,000), professional and business services (+95,000), health care (+64,000), and construction (+60,000).

The unemployment rate edged down to 3.8%, and the number of unemployed persons edged down to 6.3 million. In February 2020, prior to the coronavirus (COVID-19) pandemic, the unemployment rate was 3.5%, and the number of unemployed persons was 5.7 million.

Construction added 60,000 jobs in February, following little change in the prior month. About three fourths of the over-the-month job gain occurred in specialty trade contractors, with increases in both the residential (+24,000) and nonresidential (+20,000) components. Construction employment is slightly below (-11,000) its February 2020 level.