US UNEMPLOYMENT RATE FALLS TO 5.8%, ECONOMY ADDS 559,000 JOBS

Fri 04 June 2021:

The U.S. economy added 559,000 jobs last month, while the unemployment rate fell to 5.8% from 6.1%, the government said on Friday.

The market estimate for nonfarm payrolls was an increase of 650,000, while job additions for April were revised up by 12,000, from 266,000 to 278,000, according to data by the Bureau of Labor Statistics.

The unemployment rate decreased to 5.8% in May, compared to an estimate of 5.9%. It stood at 6.1% in April.

The number of unemployed individuals in the US declined to 9.3 million in May, down from 9.8 million the previous month.

Despite the positive figures, the labor market is still weak in the country, and the Federal Reserve may have to wait longer to raise interest rates until it recovers and full employment is reached.

There are still 7.6 million fewer Americans employed than there were pre-pandemic. At this rate, that gap won’t close for another 13 months. That’s going to help President Biden as he tries to push through his trillion-dollar job-creation bill.

“Among those not in the labor force who currently want a job, the number of persons marginally attached to the labor force, at 2.0 million, changed little in May but is up by 518,000 since February 2020,” the statement said.

Due to COVID-19, more than 22 million people in the world’s largest economy lost their jobs in March and April 2020.

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