The US created a record-breaking job record in May
The American economy created 2.5 million jobs in May. It was expected to destroy 8.3 million
The US unexpectedly created 2.5 million jobs in May, according to data released this Friday by the Labor Department, much better than expected by economists, which could indicate that the economic recovery is closer.
Analysts polled by Dow Jones hoped that job destruction had continued last month. Specifically, they calculated 8.3 million fewer jobs and that the unemployment rate increased to 19.5% from 14.7% in April. However, this fell to 13.3%. If the economists had guessed correctly, it would have been the worst figure since the Great Depression. But in the end, May numbers have shown that the US may be recovering after the fastest collapse in history. In April, the pandemic suddenly destroyed 20.5 million jobs.
Wall Street futures soared after hearing the news of the job. After opening, the Dow Jones rose 2.6%, almost 700 points; the S&P rebounds 2% and the Nasdaq 1%.
May job creation has been by far the highest in a month in the US since at least 1939, when the historical series begins. The previous record took place in September 1983, when 1.1 million jobs were added.
Despite the improvement, the unemployment rate is still at record highs. In October 2009, the peak of the global financial crisis that started in 2008, the unemployment rate in the United States reached 10%, while the all-time high was in December 1982, when it reached 10.8%. In this way, the unemployment rate escalated during April to its highest level since records began in 1948.
In terms of job destruction, the ‘shock’ of March and April was so severe that the level of employed persons has still been at its lowest since 2011. The worst month for employment after the 2008 crisis and before that of the Coronavirus occurred in March 2009, when 800,000 jobs were destroyed.
The number of long-term unemployed, those who have been unemployed for a minimum of 27 weeks, rose to 1,164 million people, equivalent to an increase of 225,000 unemployed. Their weight with respect to the total number of unemployed rose by more than 1 percentage point, to 5.6%.
On its side, the total number of unemployed people was 20,985 million people, so it fell by 2.09 million unemployed in March. For its part, the participation rate in the labor market grew six tenths, up to 60.8%. Compared to April, the active population grew by 1.7 million people.
By groups of workers, the unemployment rate among women was 13.9%, one and a half points lower than that of April, while among men it fell by 1.4 points, to 11.6%. Unemployment among young people fell to 29.9%.
In the fifth month of the year, the number of employees in the manufacturing and construction sectors grew by 669,000 people, while retail businesses hired 367,000 people and the health sector increased its workforce by 390,000 workers. The greatest increase occurred in the leisure, tourism and hospitality sector, which again hired 1.24 million people.
The duration of the average work week increased by five tenths, to 34.7 hours in May. At the same time, median hourly earnings fell 29 cents from the previous month, to $ 29.75.
Likewise, the Labor Department has reported that the number of jobs destroyed in March has been revised upwards, to 1.4 million (881,000 more), while the April data has been adjusted to -20.7 million jobs working (150,000 less).