In a positive development, the unemployment rate in the United States fell to 13.3% in May from 14.7%, and 2.5 million jobs were added in the month.
NEW YORK: In a positive development, the unemployment rate in the United States fell to 13.3% in May from 14.7% in April, and 2.5 million jobs were added in the month.
The development indicates that the Coronavirus-paralysed US economy is rebounding with surprising strength as businesses began to reopen last month after several weeks of lockdown over the pandemic.
The May job gain report suggests that businesses have quickly been recalling workers as states have reopened their economies after initially been reluctant.
In a series of tweets, President Donald Trump sought to take credit for a stunning US job report that showed the country`s unemployment rate dropped during the coronavirus pandemic. “Really Big Jobs Report. Great going President Trump (kidding but true)!” Trump wrote within minutes of the government releasing the employment report for May.
He also announced he would hold a news conference at 10 a.m. (1400 GMT).
The May employment report also reflects an improvement over April’s jobless rate of 14.7%. In April, nearly 20.7 million jobs were lost, as the US slammed the brakes on its economy in a desperate effort to slow the spread of the pandemic.
The May job data also suggested that the number of people applying for unemployment benefits has declined for nine straight weeks. And the total number of people receiving such aid has essentially leveled off.
The overall job cuts have widened economic disparities that have disproportionately hurt minorities and lower-educated workers. Though the unemployment rate for white Americans was 12.4% May, it was 17.6% for Hispanics and 16.8% for African-Americans.
However, according to experts, even with the surprising gain in May, it may take months for all those who lost work in April and March to find jobs. Some economists forecast the rate could remain in double-digits through the November elections and into next year.