Home Financial Unemployment Falls to 13.3% in May

Unemployment Falls to 13.3% in May

Helen Mann
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The jobless rate fell to 13.3% in May, according to a Department of Labor report released on Friday morning. The economy added 2.5 million jobs, in what has been the biggest one month gain in United States history. The Dow Jones Industrial Average added 680 points, growing by 2.6% on the news.

A second measure, which accounts for part time employees and unemployed workers who are looking for jobs, fell from 22.8% in April to 21.2% in May.

This points to an economy beginning to turn around. Economists surveyed prior to the report’s release anticipated unemployment reaching nearly 20%. Global economic slowdowns brought U.S. job losses to 22.1 million in March and April, completely erasing gains made from 2009-2019. After falling to 3.6% in January, the United States unemployment rate reached a record 14.7% in April.

Leisure and hospitality services saw the largest improvement. That sector gained 1.2 million positions, after giving up 7.5 million roles in April. Construction was next on the list, experiencing a 464,000 job bounceback. Manufacturing added 225,000 positions, a slight turnaround consistent with news that the ISM manufacturing index contracted less in May. Healthcare, retail, and education also saw healthy gains. Trucking positions fell by 1,200.

‘These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it,’ the Labor Department said in a release accompanying the report.

21.5 million new unemployment claims for the week ending on May 23, according to numbers released on June 4th. The number of new claims has slowed consistently since peaking at nearly 7 million in March. Earlier this week, an ADP payroll report showed job losses only netted 2.8 million in May, surprising analysts who were polled about the employment situation.

This suggests that the economy is on its way to recovery, barring a second surge of coronavirus cases or excessive damage from recent riots.

Tags EconomicsGainsjoblossunemployment
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Helen Mann

Helen is a freelance writer based in Austin, Texas. She has been writing for the logistics industry since 2016. Helen earned her Masters in Applied Economics from Johns Hopkins University in 2014. She has a Certificate or Forecasting Practice from the International Institute of Forecasters. Helen has written for TTX Company, FTR, and the Intermodal Association of North America. Helen lives with her husband and their bulldog. When she isn’t writing about logistics, she can be found practicing krav maga.

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