Prior to the official results, Dow Jones experts had a bleak prediction for May:
They expected to see 8.3 million more American citizens unemployed, which would’ve brought the total number close to 20 percent (19.5).
However, those results surprised economists and political leaders alike.
Instead of a big jump in unemployment numbers, the country enjoyed a sudden drop.
From The Daily Wire:
The U.S. unemployment rate shocked economists on Wall Street, dropping to 13.3% for the month of May.
The economy actually created more than 2.5 million jobs in May, the Labor Department reported.
As it turns out, May has become the largest one-month jobs jump in U.S. history since 1939.
Why It’s Important:
Despite the dire projections, this drop in unemployment could bode well as the country recovers from the recent pandemic.
Even the President seemed a little surprised at the result, as he wrote on Twitter:
It is a stunner by any stretch of the imagination! It’s a stupendous number.
It’s joyous, let’s call it like it is. The Market was right. It’s stunning!
We saw a significant gain in the retail sector, as many jobs returned to stores and restaurants. However, jobs were still lost in government and education due to extended closures.
The Labor Department also reported that another 1.8 million Americans made first-time unemployment claims last week.
That being said, the 1.8 million total is the lowest weekly tally since the COVID19 epidemic began, and the numbers have dropped continually for 8 straight weeks.
And in more good news, the Dow rose 650 points based on the drop in overall unemployment.
Hopefully, the numbers will continue to head in the right direction as time rolls on.
It remains to be seen what position America will be in when the presidential election rolls around, but Donald Trump appears confident.
If the nation bounces back agreeably, it could translate to more votes for the sitting President.
- Unemployment predictions for May proved way off. Instead of losing 7.5 million more jobs, the country actually gained 2.5 million.
- This caused the unemployment rate to fall to 13.3 percent. It’s the single biggest turnaround in the country’s history since 1939.
- The Dow rose 650 points on the strength of this report, and weekly unemployment claims have now declined every week for 8 consecutive weeks.
Source: The Daily Wire