Reuters: U.S. labor market unexpectedly improves in May
WASHINGTON (Reuters) - The U.S. economy unexpectedly added jobs in May after suffering record losses in the prior month, offering the clearest signal yet that the downturn triggered by the COVID-19 pandemic was probably over, though the road to recovery could be long.
The Labor Department’s closely watched employment report on Friday also showed the jobless rate falling to 13.3% last month from 14.7% in April, a post World War Two high. It came on the heels of surveys showing consumer confidence, manufacturing and services industries stabilizing.
Economic conditions have significantly improved as businesses reopened after shuttering in mid-March to slow the spread of COVID-19.
Nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April. Economists polled by Reuters had forecast the unemployment rate jumping to 19.8% in May and payrolls falling by 8 million jobs.
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More News On Last Months Job Numbers
US shocks economists by adding 2.5 million jobs in May as unemployment declines to 13.3% -- Business Insider
Unemployment rate falls to 13.3%, US adds 2.5 million jobs (AP)
Dow spikes 700 points after jobs-report shocker shows unemployment rate dropped in May (Market Insider)
WNU Editor: Every economist was predicting doom and gloom, with massive job losses expected with this report. Even the media this morning were posting stories that the employment numbers were a disaster even before the jobs report was released .... US unemployment rate during May shot up to almost 20%, a new post WWII record forcing another 8million out of work, figures expected to show today (Daily Mail). They were all wrong. Even I did not expect this .... Nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April. Economists polled by Reuters had forecast the unemployment rate jumping to 19.8% in May and payrolls falling by 8 million jobs.
Many of my American readers are always telling me to never underestimate the U.S. and what the U.S. is capable of doing. They stand vindicated with this jobs report. And the U.S. is not the only country showing an improvement. Canada (where I live) also showed the same tremendous job growth, but unlike the US the official unemployment rate in Canada rose to 13.7 per cent .... Bouncing back? Canada added 290,000 jobs in May (CBC) I still expect a long recovery, but these are very encouraging numbers.
Update: He should be touting this .... Trump touts surprise job figures: 'These numbers are incredible' (The Hill).
5 comments:
I live in Texas. The economic vitality from April 1 to June 1 was astounding as it was barely noticeable on April 1 with major streets empty and businesses shuttered still trying to cope with the shocks of govt enforced shutdown. When the state started opening on May 1, rapid economic activity was obvious as the month wore on.
So I'm not surprised by these growth rates. I also believe but can't prove, the accelerated growth occurred in American states that voted for Trump in 2016 while the blue states languished. This effect will be magnified with the riots.
Politico The left wing rag was predicting an unemployment rate of 19.5%.
15 minutes after the arch-Liberals are Politico tweeted that the real numbers came out.
The oberleutnants at the Politico section at the Ministry of Truth were dejected until they learned that Macron was going to award them Pour le Mérite for gallantry for pushing forward into a hail of truth.
"Pour le Merite....into a hail of truth".
Beautiful sentence! Beautiful! A keeper, sir. A keeper.
Agreed!! I live in TX as well and am seeing the same things you are. Something that helped is the TX government, while some of the actions were brutal, they never went as draconian as some other states did. In my considered opinion, this has helped our recovery and will continue to do so.
For business to flourish, it needs a stable environment. As a Certified Public Accountant, part of what I do is keep up with trends so as to best advise clients. Right now this is particularly important regarding COVID-19. Based upon these observations I deem it unlikely that TX will order a shutdown similar to the previous one unless hospital systems are at risk of being overwhelmed and thus would be handled locally on a case by case basis and would end immediately upon the crisis being resolved. Knowing your not going to be shut down again helps with stability. After all no one is going to build if they know the government will take it away. Knowing this is less likely to happen here puts people more at ease to get on with business.
Also, while we haven't been unscathed by the rioting, thus far we haven't been hit nearly as hard. I pray it stays that way. Without having your property and business assets trainably secure no one is going to build. It makes no sense if the thugs are just going to take it all away again at a time of their choosing. Generally we've done a better job providing the necessary security and stability than many others.
I agree with you that most of the growth probably came in states that voted Trump. I think this will become apparent over the next couple of months.
Just shows you useless Economists are! I watched this live and the usiness pundits were tripping over their words as to what they were seeing. It reminded me of the insane response to Killerys loss as the election results came in. They had all their verbage written to bash Trump and the USA, and couldn't comprehend it when they were shown to be dumb as rocks.
The stock markets up the llast 50 days because they know its getting better. But no all the pundits read the polls (again, 2016) and listened again to the so called experts.
This economy will come back quickly. Dem governors up for reelection better move fast or they will get stampeded out of office in 2020
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