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U.S unemployment rate falls unexpectedly to 13.3% in May
05 Jun 2020

unemployment

The U.S. unemployment rate surprisingly dropped to 13.3% and employers added 2.5 million jobs in May, easing worries over the economic downturn due to pandemic lockdown.

According to the Labor Department, the economy shed a combined 22.1 million jobs in April and March as businesses were directed to close, meaning there are an estimated 21 million Americans currently unemployed.

The jobless rate dropped from 14.7% in April, which was the highest rate since the great depression. Therefore the surprise decline, combined with the surge in jobs, suggests the worst is over for the nation’s economy as states ease lockdowns and businesses reopen.

Stocks roared higher following the report, with the Dow Jones Industrial Average pointing to an open nearly 600 higher.

Leisure and hospitality which were the worst-hit by the virus outbreak, accounted for almost half of the increase, with more than 1.2 million employees returning to their jobs last month.

Besides, more than 1.3 million workers returned to food services and drinking places as states gradually allowed businesses deemed non-essential to reopen.
Construction employment increased by 464,000 while education and health services increased by 424,000 and retail climbed by 368,000.

Friday’s jobs report shows that the recovery has begun as Americans are returning to work. 2.5 million jobs were gained and the unemployment rate dropped from 14.7% to 13.3%.

 

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