4 ETF Zones Set To Bloom In A Booming Job Market

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Hiring picked up pace in March as rapid vaccinations and opening of the economy powered the labor market recovery. This is especially true as the United States added 916,000 jobs – the fastest pace since August last year. Meanwhile, the unemployment rate fell to a pandemic low of 6%.

The job gains were broad-based with leisure and hospitality, public and private education, and construction adding the most. The leisure and hospitality sector added 280,000 jobs while public and private education added 190,000 jobs. The jobs in the construction sector soared by 110,000.

The $1.9 trillion relief package enacted in March also led to the strength. Democrats' stimulus plan includes $1,400 direct payments, a $300 supplement to federal unemployment benefits, and aid for state and local governments. Despite the solid gains, the economy has to recoup about 9 million jobs to return to the pre-crisis level. Stronger economic growth, more stimulus, and an aggressive vaccination effort could fulfill this gap.

According to the latest Bloomberg's vaccine tracker, about 2.8 million average vaccines were being administered every day by the end of last month, up from 1.7 million on the last day of February. At the current pace, it would take about four months to inoculate 75% of the population. President Joe Biden last week proposed the $2.3 trillion American Jobs Plan that focuses on improving American infrastructure. The proposal includes funds for restoring roads and bridges, shoring up affordable housing, backing clean-energy projects, and creating a nationwide broadband network. This will create millions of jobs, resulting in solid hiring in the coming months.

Further, Americans are growing optimistic about an economic recovery. This is especially true as the University of Michigan’s final sentiment index climbed to a pandemic high of 84.9 in late March from a preliminary reading of 83. The Conference Board on consumer confidence index also jumped to 109.7 in March — the highest level since the onset of the pandemic in March 2020. This will increase consumer spending, which will translate into stepped-up economic activity and thus continued recovery in the labor market.

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