The national unemployment rate fell 1.4 percentage point over the month to 13.3 percent, the u.s. economy has created 2.5 million jobs are remarkable in may, bouncing relative to the lower record high of 20.7 million in April.
Analysts polled by Reuters expected the national unemployment rate reaches a historical level of 19.8%.
“The numbers are a huge surprise to the upside,” said Michael Arone, chief strategist of investments at State Street Global Advisors in Boston. “This would suggest a further confirmation of the recovery of the economy in line.
“This is a strong signal that the effects are temporary and as the economy improves.”
At the State level, Nevada had the rate of unemployment is the highest in may, with 25.3 percent, followed by Hawaii, with 22.6% and Michigan, up 21.2%. The unemployment rate in may in Delaware (15.8%), Florida (14,5%), Massachusetts (16.3%) and Minnesota (9.9 per cent) have set new records for the statistics, that the Department of labor since 1976.
The largest increase in the unemployment rate between may 2019 and may 2020 occurred in Nevada (+21,3 percentage points), Hawaii (+19,9 points) and Michigan (+17,0 points).
Twelve other States have seen an increase of 10 percentage points or more in the unemployment rate in may 2020, compared to a year ago.
The largest decrease in the unemployment rate of month-over-month in may occurred in Mississippi (-5,7 percentage points), Kentucky (-5,6 percentage points) and Indiana (5.2 points).
“It seems that we have stabilized at about 15% unemployment,” said Paul M. Romer, winner of the Nobel prize in economics 2018, referring to the national unemployment rate. “The good news is that the unemployment rate has not continued to increase. But the bad news is that 15% is a very high unemployment rate. We have not seen unemployment as high since the great depression of the 1930s. ”
In the United States, at least 29 million people are collecting unemployment checks, according to the ministry of Labour, including the latest weekly report on applications for unemployment (pdf) has shown that 1,508 million u.s. workers filed applications for unemployment initials for the week ending June 13. the number of new applications has fallen for the eleventh consecutive week compared to the record high of 6,867 million recorded at the end of march, claims the weekly initial remain nearly double their peak during the great recession of 2007-2009.
The continuing layoffs in a context of low demand, and fractured supply chains maintain probably the new requests for unemployment benefits at a high level, which suggests that the economy is facing a recovery long and difficult recession, fueled by the pandemic.
“Something like close to 25 million people have been displaced in the labour market or in part by unemployment, and so we have a long journey ahead of us to bring these people to work,” said the chairman of the federal Reserve’s Jerome Powell to the Senate. in the testimony of June 16.
While each State in the country has put in place restrictions to stop the spread of COVID-19, in June, the 50 States have all started to break deadlocks and to resume their activities.
The National Governors Association, which has developed a summary of the actions of the States concerning the re-opening of the enterprises, has declared that a public health framework “robust” understanding of testing and contact tracing is necessary to ensure that States are able to resume their commercial activities in any security.
“While the States reopened gradually their economic and social activities, they must build a solid public health infrastructure with the capacity to quickly detect outbreaks, to test and isolate people who may be exposed to COVID-19, and track down and quarantine all contacts of positive cases,” said the association in a memo of 24 June.
On 19 June, some Fed officials have warned that a second wave of the deadly virus could derail hopes of an economic rebound.
“The lack of containment may ultimately lead to a need for closures over extended, which would result in a reduction of the consumption and investment, and an increase in unemployment,” said the president of the Boston Fed, Eric Rosengren, in a virtual event organized by the Chamber of commerce of Greater Providence.
The president of the Fed of Minneapolis, Neel Kashkari, has warned that the recent positive trend on the employment gains could be reversed if the epidemic was not tamed.
“If there’s a second wave, I would expect that the unemployment rate is rising again,” said Kashkari during a chat on Twitter moderated by CBS News.