U.S. Unemployment Rate Fell to 13.3% with 2.5M jobs Added
The U.S. unemployment rate fell to 13.3% in May along with 2.5 million jobs added, indicating the labor market’s recovery after the coronavirus pandemic, according to The Wall Street Journal.
The Labor Department commented that “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 pandemic and efforts to contain it.”
A month earlier, the unemployment rate hit 14.7%, the highest on records since 1948.
The jobless rate fell to 21.2% from 22.8% if accounting part-time workers and those who gave up looking for jobs.
22.1 million jobs lost in March and April but 2.5 million were added in May.
However, looting and civil unrest in the wake of the killing of George Floyd by police could delay businesses reopening and employees’ return by days or weeks.
“This extra week, maybe two with the riots, it’s taking a huge financial chunk,” said Mike Brand, owner of Penn Quarter Sports Tavern in Washington, D.C.
The labor market may suffer another challenge from the enhanced unemployment benefits.
Many people have declined offers to return to work because they are earning more from the unemployment benefits than from work, said Brand.
Becky Frankiewicz, president of ManpowerGroup North America, a job-placement company, confirmed that enhanced benefits and stimulus money provided by Congress have paid typical employers more than they had earned at work.