ThinkWhy, a SaaS company helping businesses navigate the labor market, has released its U.S. monthly jobs report for May 2020. According to the Bureau of Labor Statistics (BLS), the U.S. economy gained 2.5 million jobs in May, more than twice the previous record monthly gain of 1.1 million jobs in September 1983.
As reported monthly through the BLS, the U.S. unemployment rate for May fell to 13.3 percent. However, the May 2020 survey reference week for the BLS household survey is May 12-18. Coupling today’s BLS unemployment data with the 4.0 million initial claims reported through the weeks ending May 23 and May 30, ThinkWhy estimates unemployment ranges between 13.3 percent and 23.1 percent.
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“May’s record job gain of 2.5 million strongly suggests that an economic recovery is underway, particularly for some of the nation’s hardest hit businesses such as restaurants, construction, and segments of healthcare. With more states reopening and consumer mobility increasing, June will be a pivotal month for the breadth and sustainability of the rebound,” says Jay Denton, SVP, Business Intelligence and Chief Innovation Officer at ThinkWhy.
Labor Market Performance:
- Non-farm payrolls increased 2.5 million in May
- Unemployment sits at 13.3%
- Labor force participation increased to 60.8%
- Leisure and Hospitality gained 1.2 million jobs after losing 8.2 million jobs in March and April
- Combined March and April revisions were down by 642,000 jobs
In addition, total nonfarm payroll average hourly earnings increased by 6.7% year-over-year ending in May, possibly reflecting the widespread loss of lower-wage jobs. Combined with two consecutive weeks of generally decelerating continuing claims, these are indications the U.S. is seeing signs of recovery.
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