Hiring in the U.S. heated up in February, spelling potential opportunity for promotional products distributors.

The U.S. Department of Labor reported Friday, March 4, that employers added 678,000 jobs last month and that the national unemployment rate fell to 3.8%.

The performance crushed Wall Street estimates, which had forecasted an addition of 440,000 jobs and an unemployment rate of 3.9%. The rate of hiring in February also outpaced December and January, when the American economy added 588,000 and 481,000 jobs, respectively.

Wages increased only 1 cent an hour (0.03%) month over month but were up 5.13% compared to the same time last year.

American employers are now adding jobs at an average of 582,000 per month, noted Nick Bunker, economic research director for North America at the Indeed Hiring Lab. While headwinds that range from rampant inflation to the Russian invasion of Ukraine are creating marketplace uncertainty, the fact remains that if hiring continues at its current pace, payrolls will reach pre-pandemic levels by June 2022, he said.

“Heading into spring of 2022, the labor market is set to return to a semblance of what we were seeing back in February 2020,” wrote Bunker. “That’s something to celebrate, even if there is more work to be done.”

The robust hiring comes as American workers are quitting one job for another at historic rates. That, taken with the hiring surge, has a number of implications for the promo products industry.

U.S. workers are quitting in record numbers to go from one position to another. How do you attract and retain top talent? This survey has some insights. https://t.co/T4sxY3inwp @asicentral @ASI_MBell

— Chris Ruvo (@ChrisR_ASI) March 2, 2022

On the one hand, it means competition for top talent is intense, and that industry firms must take proactive steps to attract and retain quality employees. A recent survey from think tank The Conference Board found that, beyond good compensation, workers highly value the flexibility to work remotely, a clear path for career advancement opportunities, and employers that contribute to retirement plans.

From a sales perspective, meanwhile, the jump in hiring and competition for workers can be a boon. Merch-filled welcome packages for new hires and branded thank-you gifts for current employees can make workers feel like valued members of the team, helping to build a greater bond that can increase loyalty.

Relatedly, internal web stores where employees select free branded merch, as well as purchase cool swag, can aid the employee-engagement effort. Distributors should be having conversations with buyers in human resources departments and other managers interested in retention about these opportunities.

While every distributor’s book of business is a bit different, those keen to add clients may want to consider focusing on industries where hiring is hottest. In February, leisure and hospitality led the way in hiring, adding 179,000 jobs. Business and professional services came next, with 95,000 positions. Healthcare added 64,000 jobs, and construction bolstered its ranks by 60,000.