The US unemployment rate declined to 13.3% in May, bucking forecasts expecting a near-record 19% reading.
On Friday, unemployment data released from the US Labour Department had flabbergasted a number of analysts, economists and traders and added to prospects that the US economy might corner the ongoing recession much-earlier than anticipated, as US economy added 2.5 million jobs last month, insanely beating Wall St.
Chris Rupkey, chief economist at Mitsubishi Financial Group, had a particularly pessimistic take on the road ahead, saying that "all the workers who lost their paychecks will find it hard to regain their place in society as many of these jobs are gone forever".
"These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it", the department said.
Despite the improvements, the Bureau said the unemployment rate and the number of unemployed persons were up by 9.8 percentage points and 15.2 million, respectively, since February.
Professional and business services added 127,000 jobs in May, after losing 2.2 million jobs in April.
The racial disparities run counter to the odd assertion made Friday by President Donald Trump that Floyd was "looking down" from heaven with admiration for the May jobs report. Around 20 percent of Americans without a high school diploma were without a job in May, compared to about 6 percent just three months ago, before the coronavirus outbreak.
Construction was another sector that saw big improvements, increasing employment by 464,000 in May and gaining back nearly half of April's decline of 1 million. Governments continued to lay off workers, with a loss of nearly 600,000 jobs in May, meaning fewer services for our communities. Protests emerged in almost every major USA city after George Floyd's killing at the hands of Minneapolis police officers. Even if May's pace of job growth could be sustained - something most economists doubt - it would take at least six months to bring them all back to work.
Wear masks in public, says World Health Organization in new coronavirus advice
A woman wears a face mask as she sells vegetables in the Adjame market of Abidjan on June 5, 2020. Face masks were previously not recommended for those who are healthy and do not show symptoms.
‘Strawberry moon’ to be witnessed on Friday: All you need to know
Some coastal tribes referred to it as Fish Moon because it appeared at the same time as the shad swimming upstream. If only the name implied we'd see something as exciting as a literal strawberry shape forming across the moon.
Wall Street to Soar on Surprise Drop in Unemployment Rate
MSCI's broadest index of Asia-Pacific shares outside of Japan rose 0.9%, reversing early losses to stay near a 12-week high. USA official data showed that the latest Initial Jobless Claims declined to 1.877 million (1.843 million expected).
And the job gains were not evenly distributed in the population.
"What's great about that is there's probably a round two as retail and restaurants reopen, so we've got some more turns at the crank where we can get some more people back employed".
This category is important because it excludes part-timers who can't work as many hours as they'd like because of poor business conditions. "Really Big Jobs Report".
Education and health services industries added 424,000 payrolls in May after shedding 2.59 million in April.
But Harvard economist Jason Furman noted that the reduction in temporary layoffs was "the easy part of the recovery", and further job gains may come more slowly.
President Donald Trump declared the U.S. economy in "rocket" mode Friday after data showed a surprising recovery in the coronavirus-ravaged jobs market - lifting his own sinking reelection chances in the process.
"If this sticks, and my guess is it will, we're seeing a faster reopening than most expected, and a quicker unleashing of pent-up demand", economist Jared Bernstein of the Center on Budget and Policy Priorities said on Twitter. With the Great Recession, it took until 2016 for the unemployment rate to return to pre-downturn levels.