UNITED STATES−The U.S. Bureau of Labor Statistics reported on Friday, June 5, 2020, that while payroll employment rises, the unemployment rate has fallen by over ten percent.
According to the U.S. Bureau of Labor Statistics webpage, bls.gov, non-farm payroll employment rose by 2.4 million for the month of May, and unemployment dropped from 14.7 percent to 13.3 percent. The website attributes these improvements to the “limited resumption of economic activity that had been curtailed in March and April due to COVID-19.”
The Civilian Unemployment Rate went from a low 4.4 percent in March 2020, to 13.3 percent in the month of May.
The Average Hourly Earnings increased from 0.9 percent in March to 5.6 percent in April Th2020.
Real average hourly earnings increased 7.5 percent, seasonally adjusted, from April 2019 to April 2020. The change in real average hourly earnings combined with a decrease of 0.6 percent in the average workweek resulted in a 6.9-percent increase in real average weekly earnings over this period.
The Trump economy is once again doing what it does best: roaring past expectations!
Posted by The White House on Friday, June 5, 2020
The Council of Economic Advisors reported on the White House web page that employment showed a significant increase in leisure and hospitality (1.2 million), construction (464,000), education and health services (424,000), retail trade (368.000), and manufacturing (225,000).
The White House web page indicates that forecaster was surprised by this unexpected growth given the fact that many states are only beginning to reopen their economies during the time of reports’ reference period.
The median of all private-sector forecasts predicted 7.5 million lost jobs in May with an unemployment rate of 19.2 percent. The web site says we should not be surprised over the comeback of the economy now that the coronavirus is getting contained.
The following message is taken directly from the White House web page.
“While May’s jobs report is unquestionably positive news for America’s economic comeback, there is still much more room to grow. Three months ago in February, the unemployment rate was 9.8 percentage points lower (3.5 percent) and there were 19.6 million more jobs. But the economy beating expectations by 10 million jobs and the unemployment rate falling instead of a rising show that the transition back to strong economic growth began earlier than many expected. With more States easing restrictions on work, strong attachments between laid-off workers and their employers, and growing labor demand, there is much reason to expect the American economy to add even more jobs in June.”