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After the shockingly disappointing data in April, the number of hiring in the United States increased in May, but the number of jobs created is still at the low end of expectations.
As the employment report shows, this report is not impressive.
After the shockingly disappointing data in April, the number of hiring in the United States rebounded in May, but the number of jobs created was still at the low end of expectations.
The US Bureau of Labor Statistics said on Friday that the economy added 559,000 jobs last month and reduced the unemployment rate to 5.8%.
The number of unemployed workers fell by nearly 500,000 to 9.3 million.
Although the unemployment rate is moving in the right direction, it is still far below the pre-pandemic level when the unemployment rate was 3.5% and the number of unemployed was 5.7 million.
Despite the huge gap, there are still Millions of jobs will be begging in the U.S. immediately. The ever-increasing coronavirus vaccination rate and the removal of pandemic restrictions are releasing consumers’ pent-up demand for goods and services, prompting companies to seriously strengthen operations.
The National Federation of Independent Businesses said on Thursday that nearly half of small business owners (about 48%) reported vacancies last month. May marked the fourth consecutive month of record-breaking for this indicator, 26 points higher than the 48-year historical reading of 22%.
Economists and policymakers disagree about why companies lack eager job seekers in a country where unemployed workers are rampant.
Some Republicans blamed the $300 weekly federal unemployment benefit on the motivation of the unemployed to find a job.
25 states led by Republican governors announced plans to withdraw from the federal unemployment benefit program, which includes weekly subsidies.
But many economists believe that there are other factors at play.
Someone pointed out that with millions of companies reopening and expanding operations at the same time, bottlenecks are forming. The lack of childcare services for working parents and the fear of contracting COVID-19 are also considered to keep the unemployed on the sidelines.
Deeper dive
One of the benefits of too few workers chasing too many vacancies is wage increases.
In May, the average hourly wage of employees in the private sector increased by 15 cents to $30.33. Following an increase of 21 cents in April.
The U.S. Bureau of Labor Statistics said: “Data from the past two months indicate that rising labor demand related to recovery from the pandemic may put upward pressure on wages.”
The leisure and hospitality industry, hardest hit by the coronavirus pandemic, added 292,000 jobs last month, with food service and drinking places accounting for about two-thirds. But the industry still has 2.5 million fewer jobs than pre-pandemic levels — and the benchmark does not take into account labor or economic growth.
As schools resumed face-to-face learning, public and private education continued to increase employment opportunities, while children and daycare services increased 18,000 employment opportunities.
The manufacturing sector added 23,000 jobs in May, but still fell by more than 500,000 jobs from pre-pandemic levels. The factory is working hard to find enough workers, which has helped increase the average weekly working hours to more than 40 hours and increased overtime hours by 3.3 hours.
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