According to the Bureau of Labor Statistics (BLS), the U.S. economy gained 2.5 million jobs in May, more than twice the previous record for a monthly gain of 1.1 million jobs, which was set in September 1983.
The U.S. unemployment rate for May fell to 13.3%. However, the May 2020 survey reference week for the BLS household survey is May 12-18. Coupling this unemployment data with the 4.0 million initial claims reported through the weeks ending May 23 and May 30, ThinkWhy, a SaaS company helping businesses navigate the labor market, estimates unemployment ranges between 13.3% and 23.1%.
“May’s record job gain of 2.5 million strongly suggests that an economic recovery is underway, particularly for some of the nation’s hardest hit businesses such as restaurants, construction, and segments of healthcare. With more states reopening and consumer mobility increasing, June will be a pivotal month for the breadth and sustainability of the rebound,” said Jay Denton, SVP, Business Intelligence and Chief Innovation Officer at ThinkWhy.
In addition, total nonfarm payroll average hourly earnings increased by 6.7% year-over-year ending in May, possibly reflecting the widespread loss of lower-wage jobs. Combined with two consecutive weeks of generally decelerating continuing claims, these are indications the U.S. is seeing signs of recovery. May’s historic turnaround signals the economic recovery has begun, but the road to full recovery will undoubtedly be long.
Industry Movement:
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ThinkWhy continuously monitors and forecasts labor data at all levels, measuring impact to MSAs and businesses across the country, to support organizations and provide insights during the economic downturn as well as the recovery phase.
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One Reply to “U.S. Economy Gains 2.5MM Jobs in May Signaling Recovery in Underway”
This is good news. You need jobs to get the economy going again.