U.S. hiring activity exploded in March, as employers added 916,000 new jobs, mostly in leisure and hospitality, according to the latest employment report from the Bureau of Labor Statistics. Economists expected the spike, as the economy reopened more broadly, and the rate of vaccinations increased. The unemployment rate ticked down to 6 percent from 6.2 percent in February and is expected to continue falling in the coming months as more service-sector jobs return.

States reported that 719,000 U.S. workers filed for new unemployment benefits during the week ending Mar. 27, an increase of 61,000 after last week’s pandemic-era low. The total number of workers continuing to claim unemployment benefits fell slightly to 3.8 million. The recent overall improvement in claims data is consistent with accelerating labor market momentum as the economy reopens. Still, a complete recovery to pre-pandemic levels when new jobless claims averaged about 200,000 per week is still many months away, according to economists.