US adds 559,000 jobs in May, unemployment falls to 5.8 percent Business and Economy News

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Recruitment in the United States increased in May after a shockingly disappointing reading in April, but the number of jobs created was still at the lower end of expectations.

As job reports appear, this one is disappointing.

Recruitment in the United States increased in May after a shockingly disappointing reading in April, but the number of jobs created was still at the lower end of expectations.

The economy added 559,000 jobs last month, reducing the unemployment rate to 5.8 percent, the U.S. Bureau of Labor Statistics said Friday.

The number of unemployed workers fell by about half a million, to 9.3 million.

Although unemployment is moving in the right direction, it is still holding up well in pre-pandemic levels, when the unemployment rate was 3.5 percent and the number of unemployed stood at 5.7 million. .

Despite this yawning void, there are some millions of jobs begging in the US Right Now. Rising coronavirus vaccination rates and reduced pandemic restrictions trigger the accumulated demand for consumer goods and services, causing companies to increase operations in earnest.

Nearly half of small business owners (about 48%) reported unoccupied jobs last month, the National Federation of Independent Businesses said Thursday. May was the fourth consecutive month the indicator shattered records and was 26 points higher than the 48-year historical reading of 22 percent.

Economists and policymakers are divided on why, in a nation flooded with unemployed workers, companies are reluctant to look for work.

Some Republicans blame the $ 300 federal weekly surcharge on state unemployment benefits to discourage the unemployed from finding work.

Twenty-five states led by Republican governors have announced plans to withdraw from federal unemployment benefit programs, which include weekly recharging.

But many economists believe there are other factors at play.

Some point to the formation of bottlenecks as millions of companies reopen and expand operations at once. It is also believed that the lack of childcare options for working parents and the fear of hiring COVID-19 keep the unemployed out.

Deeper dive

One of the benefits of having few workers pursuing too many jobs is higher wages.

Average hourly earnings for employees on private payrolls rose 15 cents in May to $ 30.33. This followed after a 21-cent increase in April.

“Data from the last 2 months suggest that the increase in labor demand associated with the pandemic recovery may have put upward pressure on wages,” the Bureau of Labor Statistics said.

The leisure and hospitality companies that were hardest hit by the coronavirus pandemic added 292,000 jobs last month, with food and beverage services accounting for about two-thirds of that gain. But the sector is still at 2.5 million jobs at its pre-pandemic level, and this benchmark does not take into account labor or economic growth.

Public and private education continued to add jobs as schools resumed face-to-face learning, while childcare and children added 18,000 jobs.

The manufacturing industry added 23,000 jobs in May, but continues to drop more than half a million jobs from pre-pandemic levels. Factories are struggling to find enough workers, which helped increase the average working week above 40 hours, with overtime rising to 3.3 hours.





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