Howard Schneider and Dan Burns

(Reuters) – The grip of the coronavirus epidemic on the U.S. labor market was significantly lessened in March. This is two years after a declaration of a state emergency. In March, the number of COVID-19-related homebound people fell to a new low, and fewer individuals reported being unable to work remotely.

The government’s benchmark nonfarm payrolls report for Friday revealed that the U.S. had almost recovered from the devastating impact of 22 million Americans being thrown out of work in the initial two months after the pandemic.

A supplemental survey and the main report illustrated how the pandemic is rapidly losing control. This was complemented with data from recent health that showed an increase in hospitalizations and new infections, as well as the fact that the average number of deaths since April 2019 and March 2020 has been the lowest.

Marty Walsh, Labor Secretary, stated in an interview that “there are still challenges.” You can feel that the mood is changing in this country.

Graphic: Prime-aged women in the workforce https://graphics.reuters.com/USA-ECONOMY/JOBS/zgvomyzjnvd/chart.png

An array of data points showed an employment picture that is reminiscent of February 2020. It was then called one of the most vibrant job markets in post-World War Two. They include:

* The workforce participation rate of women aged 25-54, which has experienced an uneven recovery, jumped by the most since June 2020, seven-tenths of a percentage point. At 76.5% it’s just four-tenths more than it was before the pandemic.

* The broadest measure of unemployment also capturing those marginally attached to the workforce or working part time for economic reasons fell to 6.9%, below February 2020’s level and a fraction from a record low.

* Overall employment climbed to just 1% below its pre-pandemic level, but minority groups have more than fully recovered: Total employment among Blacks, Hispanics and Asians now surpasses February 2020 levels.

Graphic: Employment recovery by race https://graphics.reuters.com/USA-ECONOMY/UNEMPLOYMENT/znvnexbyepl/chart.png

According to the report, the actual disease has had only a minimal impact on the behavior of workers since the beginning of the pandemic.

Only 874,000 people reported not having sought employment in the past four weeks due to COVID-19. This is down from 1.23 Million in February and 1.81 Miillion in January, when Omicron drove U.S. infected to an all-time high.

About 9.7 Million people were not looking for employment because of the coronavirus pandemic. This was in May 2020, the month that the Bureau of Labor Statistics began its supplement survey about the effects of the pandemic on their job market.

Walsh explained that “people feel more relaxed going back home to work.” “More people (are) shopping. The hospitality industry and leisure sector are both really benefiting.

Graphic: COVID-19 kept fewer from seeking work https://graphics.reuters.com/USA-ECONOMY/COVID/klvykjbzovg/chart.png

Only 10% said that they teleworked, or used COVID-19 to work from home. This figure represents about 15.8 millions workers. This is a low number for a pandemic and represents a third to one-third of those who reported needing remote work in May 2020.

“I don’t know what the new normal will be, but it is a good sign to get more people into the workforce,” Walsh said. Walsh said the problem in coming months is “we will start running out people,” which should be a reason to make immigration an urgent priority.

In my conversations with employers, “nobody ever said to me that this is a bad plan.”

Graphic: Fewer were kept from the workplace by COVID-19 https://graphics.reuters.com/USA-ECONOMY/COVID/byvrjbekxve/chart.png