An unexpected drop in the May unemployment rate set off a fresh round of debate today over how fast the economy can rebound from the coronavirus pandemic and how much the government should intervene to help
An unexpected drop in the unemployment rate set off a fresh round of debate on Friday over how fast the economy can rebound from the coronavirus pandemic and how much the government should intervene to help.13.3 percent in May from a peak of 14.7 percent in April, the Bureau of Labor Statistics reported — surprising economists who had widely expected the rate to jump to about 20 percent in May, given that more than 40 million people have applied for unemployment benefits in recent weeks.
Some economists warned that the unexpected number likely understates the extent of the economic pain felt last month. Large numbers of people have been classifying themselves as employed but absent from work in the Labor Department’s survey, and that can artificially suppress the unemployment rate. The unemployment figure reported Friday reflects the situation in the middle of May, which is when the agency surveys Americans to get a snapshot of the workforce.
"The provisions that we've implemented, are sustaining income, which means that as things reopen there is confidence and demand there to get people back to work," Shierholz said.
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