Employment Excellence

Nonfarm payrolls grew by a gobsmacking 678,000 in February with upward revisions to December and January totaling 92,000. The unemployment rate dropped to 3.8% despite a rise in the labor force participation rate to a post-Covid high of 62.3%. With such a strong economy and labor market, wages will continue rising. But, given contractionary fiscal policy, tightening monetary policy, and rising energy prices, hiring most probably slows as 2022 progresses.