“I think this is just as much about a shortage in labor supply as it is about a shortage of labor demand,” said Jason Furman, an economist at Harvard University and a former Obama administration advisor.
Local government education added 31,000 jobs as children returned to in-school learning, while social assistance increased by 23,000.
Professional and business services saw a steep 111,000 decline in jobs in temporary help, while support services lost 15,000 positions.
Total employment in the household survey rose by 328,000, still leaving the level more than 7.5 million below where it was in February 2020.
Businesses have stepped up the hiring pace as Covid-related restrictions have been relaxed amid widespread vaccine distribution and declining cases and hospitalizations.
Federal Reserve officials have been expressing confidence in the recovery’s pace recently but have stressed more challenges are ahead.