Unemployment rate dropped to 13.3% as economy gained 2.5M jobs in May

[Origanalist]

What's this????

The economy gained 2.5 million jobs in May, lowering the unemployment rate to 13.3%, the Labor Department said Friday.

The payroll gains, the largest on record, represented a stunning development and a hint that the worst-case scenario for the economy might not come to pass. Forecasters had expected job losses of 8 million and an unemployment rate of about 20%.

"This looks like the shortest recession in history," said Chris Rupkey, chief financial economist for MUFG.

Employment rose sharply in sectors such as leisure, hospitality, and retail as states began to reopen last month — the same industries that had seen extreme rates of layoffs as the pandemic struck. The leisure and hospitality sectors saw job gains of 1.2 million, following losses of 7.5 million in April and 743,000 in March. The retail sector gained 368,000 in May, after a loss of 2.3 million in April.

Construction last month gained nearly half of the job losses it suffered in April. Education and health also saw a significant bounce back.

Also, unemployed workers sitting on the sidelines jumped back into the market as the labor force participation rate increased in May.

Altogether, 7.7 million unemployed workers went back to work in May, a sign that many of the employees who were temporarily dismissed during the worst of the pandemic will be able to rejoin their old employers.

Still, the hole that the economy must dig itself out of is extremely deep. More than 18 million people said that they were temporarilydismissed during the worst of the pandemic will be able to rejoin their old employers.

Still, the hole that the economy must dig itself out of is extremely deep. More than 18 million people said that they were temporarily unemployed in April.

More at https://www.washingtonexaminer.com/n...5m-jobs-in-may

[Madison320]

What's this????

The economy gained 2.5 million jobs in May, lowering the unemployment rate to 13.3%, the Labor Department said Friday.

The payroll gains, the largest on record, represented a stunning development and a hint that the worst-case scenario for the economy might not come to pass. Forecasters had expected job losses of 8 million and an unemployment rate of about 20%.

"This looks like the shortest recession in history," said Chris Rupkey, chief financial economist for MUFG.

Employment rose sharply in sectors such as leisure, hospitality, and retail as states began to reopen last month — the same industries that had seen extreme rates of layoffs as the pandemic struck. The leisure and hospitality sectors saw job gains of 1.2 million, following losses of 7.5 million in April and 743,000 in March. The retail sector gained 368,000 in May, after a loss of 2.3 million in April.

Construction last month gained nearly half of the job losses it suffered in April. Education and health also saw a significant bounce back.

Also, unemployed workers sitting on the sidelines jumped back into the market as the labor force participation rate increased in May.

Altogether, 7.7 million unemployed workers went back to work in May, a sign that many of the employees who were temporarily dismissed during the worst of the pandemic will be able to rejoin their old employers.

Still, the hole that the economy must dig itself out of is extremely deep. More than 18 million people said that they were temporarilydismissed during the worst of the pandemic will be able to rejoin their old employers.

Still, the hole that the economy must dig itself out of is extremely deep. More than 18 million people said that they were temporarily unemployed in April.

More at https://www.washingtonexaminer.com/n...5m-jobs-in-may

And it's only costing us a trillion a month! We just hit 26 trillion, yay!

[Origanalist]

And it's only costing us a trillion a month! We just hit 26 trillion, yay!

Just looking for some good news in a sea of bad. On a personal note all those construction workers going back to work on the high rises and track homes will make the field a lot less cluttered in my world.

[Warrior_of_Freedom]

so if the unemployment rate was 13% does that mean the real one was 70%?

[Pauls' Revere]

WRONG!, ITS ALL WRONG!

ERROR.

ERROR.

ERROR.


https://www.stamfordadvocate.com/bus...r-15320999.php

When the U.S. government's official jobs report for May came out on Friday, it included a note at the bottom saying there had been a major "error" and the unemployment rate likely should be higher than the widely report 13.3 percent rate.

The special note said that if this misclassification error had not occurred, the "overall unemployment rate would have been about 3 percentage points higher than reported," meaning the unemployment rate would be about 16.3 percent for May.

[AngryCanadian]

WRONG!, ITS ALL WRONG!

ERROR.

ERROR.

ERROR.


https://www.stamfordadvocate.com/bus...r-15320999.php

When the U.S. government's official jobs report for May came out on Friday, it included a note at the bottom saying there had been a major "error" and the unemployment rate likely should be higher than the widely report 13.3 percent rate.

The special note said that if this misclassification error had not occurred, the "overall unemployment rate would have been about 3 percentage points higher than reported," meaning the unemployment rate would be about 16.3 percent for May.

If Joe Biden is elected then i am sure magically the numbers would drop to 6%

[Pauls' Revere]

If Joe Biden is elected then i am sure magically the numbers would drop to 6%

I think part of the DNC wants this chaos so they can expand government, start new programs, spend a bazillion dollars pretend to be saviors of us all.

[John-G]

Looking st the businesses destroyed and/or boarded up after this rioting, the many states still in some phase of a lockdown, empty stores and restaurants etc. I seriously doubt 2.5 million people will still remain employed after june. For some reason, I do not buy this number.

[donnay]

Just looking for some good news in a sea of bad. On a personal note all those construction workers going back to work on the high rises and track homes will make the field a lot less cluttered in my world.

If people do not look for the positive things, then the negatives things consume their daily lives. How sad.

[Madison320]

Just looking for some good news in a sea of bad. On a personal note all those construction workers going back to work on the high rises and track homes will make the field a lot less cluttered in my world.

Except that it's clearly not good news when the government has to borrow to generate employment instead of letting the free market create jobs.

[Madison320]

If people do not look for the positive things, then the negatives things consume their daily lives. How sad.

Do you think when the government prints and borrows to create jobs, that's a good thing?

If you lose your job and then borrow a bunch of money to take a vacation, is that a good thing? Or an irresponsible thing?

I'm looking for positive things like a return to free markets and sound money.

[AngryCanadian]

Looking st the businesses destroyed and/or boarded up after this rioting, the many states still in some phase of a lockdown, empty stores and restaurants etc. I seriously doubt 2.5 million people will still remain employed after june. For some reason, I do not buy this number.

Those 2.5 Million unemployed can think the DNC, News Media and the BLM protests

[donnay]

Do you think when the government prints and borrows to create jobs, that's a good thing?

If you lose your job and then borrow a bunch of money to take a vacation, is that a good thing? Or an irresponsible thing?

I'm looking for positive things like a return to free markets and sound money.

Well in order to have a truly free market we have to push for the monopolies to be broken up. Those monopolies have put a stranglehold on any competition.

[oyarde]

I think part of the DNC wants this chaos so they can expand government, start new programs, spend a bazillion dollars pretend to be saviors of us all.

Correct . Pelosi staff will put bills together to fix all your woes.

[oyarde]

Do you think when the government prints and borrows to create jobs, that's a good thing?

If you lose your job and then borrow a bunch of money to take a vacation, is that a good thing? Or an irresponsible thing?

I'm looking for positive things like a return to free markets and sound money.

You convinced me . I deserve another vacation

[John-G]

Those 2.5 Million unemployed can think the DNC, News Media and the BLM protests

Can't buy that, the reps have the supreme court, the health agencies, the senate, the executive, the military and the governor position in the majority of the states. Sorry but I just can't give the republicans a pass on this, they stood idle by while the country burned literally and figuratively.

[Origanalist]

Except that it's clearly not good news when the government has to borrow to generate employment instead of letting the free market create jobs.

Is this a new thing? I thought they've been doing that for quite some time now. "We have to destroy the free market, to save the... ".

[Madison320]

Well in order to have a truly free market we have to push for the monopolies to be broken up. Those monopolies have put a stranglehold on any competition.

Yeah, great idea.

As Ayn Rand described antitrust laws: "Free competition at the point of a gun.

[Madison320]

Is this a new thing? I thought they've been doing that for quite some time now. "We have to destroy the free market, to save the... ".

Of course it's not new. But the "job creation" budget has never been remotely close what it is now. It's pretty much guaranteed to end in hyperinflation.

[donnay]

Yeah, great idea.

As Ayn Rand described antitrust laws: "Free competition at the point of a gun.

In the meantime the Big corporations (monopolies) will crush any idea you have to start a competing business, if it interferes with their cash flow.

[Origanalist]

Of course it's not new. But the "job creation" budget has never been remotely close what it is now. It's pretty much guaranteed to end in hyperinflation.

Oh, no doubt. Not looking forward to it one bit.

[devil21]

My SO said that it was probably a bounce from businesses rehiring laid off employees to clear the 8 week headcount requirement of the original PPP program, required for the loan to be forgiven. The original CARES Act was passed March 27 and the first round of loans was quickly depleted. 8 weeks would have been up for first borrowers around June 1. This made sense to me and she was in charge of securing some PPP loans for her organization. So while the numbers may have some legitimacy, it wasn't from organic growth or "reopening" but rather from the official headcount requirement of the PPP. Nothing stopping the borrowers from not giving them hours and then firing them again after the loan is forgiven.