U.S. Economy Unexpectedly Adds 2.5 Million Jobs in May
The economy is finally breathing a sigh of relief after the government’s statistics from today contracted ADP’s jobs report from earlier int he week.
ADP’s job report on Wednesday estimated that 2.76 million private sector jobs were lost in May, after an astounding 19.6 million were lost in April. But in light of the dismal forecast, as I reported yesterday, Moody’s Analytics (which puts together ADP’s payroll reports) economist Mark Zandi expected that the bleeding would finally stop in June and job growth would resume this month.
And it turns out that he was wrong – but only because it turned out that the ADP’s forecasts were way off, and the official government statistics from the Bureau of Labor show the economy did in fact add jobs in May.
According to Fox Business:
The U.S. unemployment rate unexpectedly dropped to 13.3 percent in May, down from a record high in April, indicating the nation’s economy is recovering faster than expected from the coronavirus lockdown.
The Labor Department said in its Friday report that employers added a stunning 2.5 million jobs in May — the biggest increase on record. The economy shed a combined 22.1 million jobs in April and March, meaning there are an estimated 21 million Americans currently out of work.
Economists surveyed by Refinitiv expected the report, conducted in mid-May, to show that unemployment rose to 19.8 percent in May and that employers shed 8 million jobs. If the expectation had been accurate, it would have been the worst figure since the Great Depression.
The breakdown by sector is as follows:
Restaurants: +1.4 million
Air transport: -50,000
— Stephanie Myers (@_StephanieMyers) June 5, 2020
If only the losses in government employment were greater.