The U.S. jobs report for March, out on Friday, is expected to reflect another solid month of employment gains, supported by consumer demand and a sharp decline in coronavirus cases.

According to economists polled by Bloomberg, the report will show that 450,000 people were added to the payroll in March, keeping pace with the average gain over the past six months. Unemployment is expected to fall to 3.7% from 3.8%.

While business growth, wage growth and high spending signal a robust economic recovery from the pandemic, price increases cast a dark shadow. Inflation, the highest in decades, is aggravated by international events: Russia’s invasion of Ukraine, which is driving up commodity prices, and Covid-19 outbreaks in the centers of supply in Asia.

“We expect a strong jobs report as the economy ignores the Omicron wave,” said Robert Frick, economist at Navy Federal Credit Union. “There will likely be continued strong hiring in leisure and hospitality, as well as government and education, which are also categories still well below pre-pandemic levels.”

Much of these hiring services may be part of an effort by employers to capture pent-up demand as declining coronavirus cases drive a return to tourism and in-person entertainment.

The labor market is as strong as it has been since the late 1960s by some measures, giving many workers more leverage over wages and conditions. Still, the Federal Reserve fears that wage gains will fuel inflation as employers pass on more costs to consumers.

Analysts will therefore focus on the report’s findings regarding average hourly earnings. In February, profits were flat after a series of increases.

“Fortunately, much of the hiring will be for low-wage service workers,” Mr Frick said. “Unfortunately, these workers are the hardest hit by high inflation, especially for basic necessities like gas and food.”