Teh One Who Knocks
06-05-2020, 01:27 PM
By Megan Henney | FOXBusiness
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.
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.
“Barring a second surge of Covid-19, the overall U.S. economy may have turned a corner, as evidenced by the surprise job gains today, even though it still remains to be seen exactly what the new normal will look like," said Tony Bedikian, head of global markets at Citizens Bank.
The jobless rate dropped from 14.7 percent in April, which was the highest level ever since record-keeping began in 1948. The surprise decline, combined with the surge in jobs, suggests the worst is over for the nation's economy as states ease stay-at-home guidelines and businesses bring back staff.
Stocks roared higher following the report, with the Dow Jones Industrial Average pointing to an open nearly 600 higher.
"Today was a shocking jobs number – and for the first time this year it was a positive shock," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. "It’s very encouraging to see workers being recalled back by their employers and the unemployment rate dropped back down in May."
President Trump said he was "stunned" about the unexpected addition of jobs last month.
"I've never seen numbers like this and I've been doing this for 30 years," he wrote in a tweet.
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Leisure and hospitality, the sector hit hardest by the virus outbreak, accounted for almost half of the increase, with more than 1.2 million employees returning to their jobs last month. In April, the industry lost a staggering 7.6 million jobs.
More than 1.3 million workers returned to food services and drinking places as states gradually allowed businesses deemed nonessential to reopen.
Construction also saw a significant jump in employment last month: The sector added 464,000 jobs. Education and health services increased by 424,000 and retail climbed by 368,000.
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.
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.
“Barring a second surge of Covid-19, the overall U.S. economy may have turned a corner, as evidenced by the surprise job gains today, even though it still remains to be seen exactly what the new normal will look like," said Tony Bedikian, head of global markets at Citizens Bank.
The jobless rate dropped from 14.7 percent in April, which was the highest level ever since record-keeping began in 1948. The surprise decline, combined with the surge in jobs, suggests the worst is over for the nation's economy as states ease stay-at-home guidelines and businesses bring back staff.
Stocks roared higher following the report, with the Dow Jones Industrial Average pointing to an open nearly 600 higher.
"Today was a shocking jobs number – and for the first time this year it was a positive shock," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. "It’s very encouraging to see workers being recalled back by their employers and the unemployment rate dropped back down in May."
President Trump said he was "stunned" about the unexpected addition of jobs last month.
"I've never seen numbers like this and I've been doing this for 30 years," he wrote in a tweet.
1268885664206073856
Leisure and hospitality, the sector hit hardest by the virus outbreak, accounted for almost half of the increase, with more than 1.2 million employees returning to their jobs last month. In April, the industry lost a staggering 7.6 million jobs.
More than 1.3 million workers returned to food services and drinking places as states gradually allowed businesses deemed nonessential to reopen.
Construction also saw a significant jump in employment last month: The sector added 464,000 jobs. Education and health services increased by 424,000 and retail climbed by 368,000.