May jobs report: US economy unexpectedly adds 2.5 million payrolls, unemployment rate falls to 13.3%

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May jobs report: US economy unexpectedly adds 2.5 million payrolls, unemployment rate falls to 13.3%
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BREAKING: US economy unexpectedly adds 2.5 million jobs in May, unemployment rate falls to 13.3%

The May jobs report showed an unexpected rise in the number of non-farm payrolls in the economy and a drop in the unemployment rate from April, averting what economists expected would be a rise in the jobless rate to the highest level since the Great Depression amid the coronavirus pandemic.

“Total nonfarm payroll employment increased by 2.5 million in May, reflecting a limited resumption of economic activity that had been curtailed due to the coronavirus pandemic and efforts to contain it,” the BLS said in its statement Friday. Within the services sector, only the transportation and warehousing, utilities, and information industries extended job losses from April.

Friday’s jobs report also included an unexpected improvement in the unemployment rate to 13.3%, after hitting the highest level in BLS monthly survey history in April at 14.7%. Most economists expected the jobless rate would climb further to nearly 20% in May, reflecting those still unemployed amid ongoing virus-related business disruptions. The monthly unemployment rate was estimated to have been about 25% at the peak of the Great Depression in 1933.

“If workers who were recorded as employed but absent from work due to ‘other reasons’ had been classified as unemployed on temporary layoff, the overall unemployment rate would have been about 3 percentage points higher than reported .”

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