The Shocking News in the Unemployment Report

Dated: 06/08/2020

Views: 2

The Shocking News in the Unemployment Report



Last Friday, the U.S. Bureau of Labor Statistics released their May Employment Situation SummaryLeading up to the release, most experts predicted the unemployment rate would jump up to approximately 20% from the 14.7% rate announced last month.

The experts were shocked.

The Wall Street Journal put it this way:

“The May U.S. jobless rate fell to 13.3% and employers added 2.5 million jobs, blowing Wall Street expectations out of the water: Economists had forecast a loss of 8.3 million jobs and a 19.5% unemployment rate.”

In addition, CNBC revealed:

“The May gain was by far the biggest one-month jobs surge in U.S. history since at least 1939.”

Here are some of the job gains by sector:

  • Food Service and Bartenders – 1,400,000
  • Construction – 464,000
  • Education and Health Services – 424,000
  • Retail – 368,000
  • Other Services – 272,000
  • Manufacturing – 225,000
  • Professional Services – 127,000

There’s still a long way to go before the economy fully recovers, as 21 million Americans remain unemployed. That number is down, however, from 23 million just last month. And, of the 21 million in the current report, 73% feel their layoff is temporary. This aligns with a recent Federal Reserve Bank report that showed employers felt 75% of the job losses are temporary layoffs and furloughs.

The Employment Situation Summary was definitely a pleasant surprise, and evidence that the country’s economic turnaround is underway. The data also offers a labor-market snapshot from mid-May, when the government conducted its monthly survey of households and businesses. Many states did not open for business until the second half of May. This bodes well for next month’s jobs report.

Bottom Line

We cannot rejoice over a report that reveals millions of American families are still without work. We can, however, feel relieved that we are headed in the right direction, and much more quickly than most anticipated.

Blog author image

Garett Huber

Dedication | Commitment | Trust | A full-time Realtor within Santa Rosa Beach and surrounding areas, Garett offers a wealth of knowledge and experience that is unsurpassed. Garett's keen insight int....

Latest Blog Posts

A Historic Rebound for the Housing Market

A Historic Rebound for the Housing MarketPending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors;(

Read More

Are New Homes Going to Be Available to Buy This Year?

Are New Homes Going to Be Available to Buy This Year?In today’s economy, everyone seems to be searching for signs that a recovery is coming soon. Many experts agree that it may actually

Read More

What Are Experts Saying About the Rest of 2020?

What Are Experts Saying About the Rest of 2020?One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the

Read More

Think You Should For Sale By Owner? Think Again [INFOGRAPHIC]

Think You Should For Sale By Owner? Think Again [INFOGRAPHIC]Some Highlights For Sale By Owner (FSBO) is the process of selling real estate without the representation of a real estate

Read More