Employment News: US Adds 559,000 New Jobs in May
After a long pause in the economy and a weakly improving April, the US is all set to get back on track. According to the numbers released on 6th June, the total employment in the US rose by 559,000 in May. This means employers added 559,000 more jobs in May.
1. Rise in New Jobs
Leisure and hospitality sectors, education, and healthcare sectors saw the strongest rise in the numbers, as pandemic-related restrictions continued to ease in some parts of the country. Here is an industry-wise breakup of the employment increase.
- Leisure and hospitality – +292,000
- Food services and drinking places – +186,000
- Amusements, gambling, and recreation – +58,000
- Accommodation – +35,000
- Health care and social assistance – +46,000
- Manufacturing – +23,000
- Transportation and warehousing – + 23,000
2. Dip in Unemployment Figures
The unemployment rate also saw a dip in the numbers as it fell from 6.1% in April to 5.8% in May, a decrease of 0.3 percent. Among the unemployed, the number of persons on temporary layoff declined by 291,000 to 1.8 million in May.
This measure is down considerably from the recent high of 18.0 million in April 2020 but is 1.1 million higher than in February 2020.
The number of permanent job losers decreased by 295,000 to 3.2 million in May but is 1.9 million higher than in February 2020.
3. Increase in Vaccination Numbers
This boost in economy and numbers can be attributed to the rigorous vaccination drive being conducted in the country.
As per the June 15 data released by CDC, more than 52.6% (1 74,674,144) of Americans have received at least one dose of the vaccine so far. And 43.9% (45,768,367) have received both doses.
4. Jump in Job Postings
The good news does not end here.
The number of job postings has also increased during May and the first week of June. Through June 4, job postings are up 28.6% from Feb. 1, 2020, the pre-pandemic time.
Indeed Chief Economist Jed Kolko also declared, “Job postings in nearly all sectors are above the pre-pandemic baseline., led by goods-related sectors like manufacturing, loading and stocking, and construction”.
5. Struggling to Fill Roles
Surprisingly, while the number of jobs in the market has spiked, companies are struggling hard to fill these positions. As a result, many companies are increasing their hourly wages and providing other benefits to attract candidates to the jobs.
One probable reason for the dearth of resources is said to be a large number of people leaving the workforce during the pandemic due to fear of the virus, lack of vaccination, childcare, and other personal issues. While it is yet to be seen how many of them return. One thing is for sure, if trends continue to improve, the US will soon get its derailed economy back on track, faster than any other country.