BBVA Research publishes Employment Watch: Strong job creation backed by vaccination, reopenings and massive fiscal support

Rhea-AI Summary

According to BBVA Research, March 2021 saw a significant drop in unemployment to 6%, despite ongoing high rates. Nonfarm payrolls increased by 916,000, the largest rise since August 2020, primarily driven by sectors like leisure, hospitality, and healthcare. Adjustments to prior months added an additional 156,000 jobs. The research underscores that while March's figures are promising, the labor market remains below pre-pandemic levels. Full recovery is anticipated, but it may take several more quarters.

Positive

• 916,000 increase in nonfarm payrolls in March 2021, the largest since August 2020.
• 70% of job growth concentrated in leisure, hospitality, government, construction, education, and healthcare.

Negative

• Unemployment remains high at 6%, indicating ongoing labor market challenges.
• Labor market recovery is expected to take several quarters to reach pre-pandemic levels.

HOUSTON, April 7, 2021 /PRNewswire/ -- According to the latest economic analysis published by the BBVA Research team, March's unemployment figures remain stubbornly high despite strong increases in employment, dropping to 6 percent for the month.

Nonfarm payrolls rose by 916,000 in March, a significant increase compared to recent months and the largest since August 2020. The increase reflects large contributions from leisure and hospitality, government, construction, education and healthcare services. The employment situation was also boosted by upward revisions to January and February reports of 67,000 and 89,000 respectively, according to the analysis co-authored by BBVA Chief Economist Nathaniel Karp, Principal Economist Marcial Nava and economist Adrian Casillas. 

The vast majority of sectors saw moderate employment growth and any decreases were comparably negligible. Nearly 70 percent of the increase in total nonfarm payroll was shared between leisure and hospitality, government, construction, and education and healthcare services. The growth in these industries represent the combined impact of several forces: universal vaccine distribution; a flattening in Covid-19 cases, a recovery from extreme winter weather, the relaxation of restrictions in many places, and the American Rescue Plan Act.

The team's analysis concludes that, despite March's vigorous results, the labor market is far from pre-pandemic levels. Significant employment growth is expected to continue, though it may take several quarters to achieve full recovery.

BBVA USA's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries.

The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA USA operates. Follow their work on Twitter @BBVAResearch and @BBVANews_USA.

Read the full report here.

See the complete library of BBVA Research publications here.

For more BBVA news visit, www.bbva.com and the U.S. Newsroom.

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For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.

About BBVA

BBVA Group
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.

BBVA USA
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.

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SOURCE BBVA USA

FAQ

What were the unemployment figures for March 2021 for BBVA?

The unemployment rate dropped to 6% in March 2021.

How many jobs were created in March 2021 according to BBVA?

According to BBVA, the nonfarm payrolls rose by 916,000 in March 2021.

What sectors contributed to job growth in March 2021 according to BBVA?

Leisure, hospitality, government, construction, education, and healthcare services significantly contributed to job growth.

How does BBVA view the labor market recovery?

BBVA anticipates significant employment growth but expects it to take several quarters for the labor market to fully recover.