May Jobs Report Better Than Expected

June 8, 2020
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Jobs data for May was released on Friday, and the news is better than expected. While the economy is still struggling in the wake of the Coronavirus Pandemic and ongoing social unrest throughout the United States, there are some positives to take away from the latest figures.

Here’s what investors need to know at the start of this week.

Key Takeaways from the Latest Jobs Report

Analysts had predicted that unemployment could hit 19.5% in May, with job losses of at least 8.33 million. Instead, the report showed that total employment increased by 2.5 million, leaving America with an unemployment rate of 13.3%.

This already indicates that the nation is recovering from the worst of the Coronavirus Pandemic and the statewide lockdowns that were introduced before its peak.

Leisure and hospitality workers helped to bolster the numbers. With social distancing measures in place, these workers have been hard hit by the pandemic. 7.5 million were laid off or furloughed in April. In May, 1.2 million returned to work.

The construction industry was also a strong performer. Almost half of April’s construction job losses were reversed in May, with 464,000 workers returning.

Retail also had some strong data. 2.3 million retail jobs were lost in April, but 368,000 came back to work or found new jobs in May.

President Trump Happy With the Recovery

The President, who has shown little support for statewide lockdowns, is happy that workers are returning to their industries. He said in a Twitter post after the report that “It’s a stupendous number. It’s joyous, let’s call it like it is. The Market was right. It’s stunning!”

Trump referred to the confidence that was seen in the stock market last week. Investors already had hope that the jobs data would start to come back in a positive direction, and stocks rallied before Friday. The data could bring more people back to their brokers and online trading accounts, increasing the total volume and capital moving through the markets.

Expect Another Week of Positivity in Stocks

Although it’s impossible to predict future stock movement, most analysts are confident that this week will be another positive one. The momentum from Friday could continue today, and the jobs data will have a positive impact on bullish sentiment.

The Coronavirus Pandemic isn’t over, but the worst of its economic impact could be.

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