BREAKING: U.S. economy added added 559,000 jobs in May, double April's disappointing 266,000, and the unemployment rate ticked down to 5.8% from 6.1%, as widespread vaccinations allow for the reopening of businesses.
and the unemployment rate ticked down to 5.8 percent from 6.1 percent, according to data released Friday by the Bureau of Labor Statistics.
A slew of positive employment data this week pumped optimism into labor market observers after ADP reported Thursday that private payrolls rose by 978,000 last month, and the Department of Labor said initial unemployment claims fell to 385,000, their lowest level since the pandemic hit — though still double the pre-pandemic average.
Yet businesses are still facing worker shortages, as people contend with a lack of child care and fear of contracting the virus, and others take early retirement or reconsider their career trajectory. Some Republican governors have said the emergency federal unemployment benefits have contributed to a lack of incentive to return to work. Already, 25 states have said they will withdraw the $300 weekly benefits before their official expiration in September.
"The supply constraints are problematic, but it doesn't mean that's going to prevent the economy from continuing to recover," said Ryan Sweet, senior economist at Moody's Analytics.
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