Jobless rate falls
Published 8:35 am Friday, June 5, 2020
WASHINGTON – The U.S. unemployment rate fell unexpectedly in May to 13.3 percent as states loosened their coronavirus lockdowns and businesses began recalling workers.
The government said Friday that the economy added 2.5 million jobs last month, driving unemployment down from 14.7 percent in April.
The job gain, which confounded economists’ forecasts of another round of severe losses, suggested that thousands of stores, restaurants, gyms and other companies reopened and rehired more quickly than many analysts had expected.
Still, it raised a key question for businesses and unemployed workers: How fast will the rebound proceed? For hiring to continue at a solid pace, businesses will probably need to see signs that consumers are starting to resume their pre-outbreak habits of shopping and dining out.
Other evidence has shown that the economic meltdown triggered by the coronavirus has bottomed out. The number of people applying for unemployment benefits has declined for nine straight weeks. And the total number of Americans receiving such aid has leveled off.
Even with the surprising gain in May, it could take months for all those who lost work in April and March to find jobs.
Some economists forecast the rate could remain in double-digits into next year. But the economists had also warned that unemployment in May could hit 20 percent or more.
The street protests over George Floyd’s killing that led to vandalism and looting in dozens of cities didn’t affect Friday’s figures, which were compiled in mid-May. But business closings related to the unrest could show up in the June report.
A few businesses are reporting signs of progress even in hard-hit industries. American Airlines, for example, said this week that it will fly 55 percent of its U.S. routes in July, up from just 20 percent in May.
And the Cheesecake Factory said one-quarter of its nearly 300 restaurants have reopened, though with limited capacity. Sales are at nearly 75 percent of the levels reached a year ago, the company said.