Best US Jobs Report Ever

Best US Jobs Report Ever

over 3 years ago2 mins

The US economy defied all expectations to add over two million jobs last month, according to data out on Friday 🇺🇸

What does this mean?

After falling a record 20.7 million in April, the number of jobs in the US actually rose last month by 2.5 million. That pushed the unemployment rate down to 13.3% from 14.7% the month before, as some of the sectors hit hardest by coronavirus – leisure and hospitality, construction, retail – started hiring again in May.

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What’s most remarkable about the numbers is how much better they were than expected: not a single forecast had projected an improvement in either the number of jobs or the unemployment rate 😲 Of course, the jobless rate still remains well above its peak after the 2008 financial crisis, and there was a catch: the unemployment rate would’ve been 3% higher if it had included anyone who was technically employed but absent from work – maybe because they were, say, suffering from an all-too-familiar virus…

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Why should I care?

The surprise improvement in the jobs market is raising hopes the US economy might bounce back from the pandemic faster than expected. That could explain why US stocks jumped by more than 2% on Friday, and are now just 6% shy of their all-time highs 📈 But with the fabled coronavirus vaccine still nowhere to be seen, investors are nervously looking for any signs of a second wave of infections that could derail the stock market’s recovery.

American households and businesses have been receiving almost $3 trillion in economy-boosting measures since March – in the form of direct checks, unemployment benefits, and cheap loans 💵 And there’s potentially even more dough heading their way: the government is considering another round of measures worth up to $1 trillion.

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