US unemployment drops unexpectedly to a still-high 13.3%

U.S. unemployment rate fell unexpectedly in May to 13.3 per cent — still on par with what nation witnessed during Great Depression — as states loosened ir coronavirus lockdowns and businesses began recalling workers. government said Friday that ecomy ded 2.5 million jobs last month, driving unemployment down from 14.7 per cent in April.

May job gain, which confounded ecomists' expectations of ar round of severe losses, suggests that thousands of stores, restaurants, gyms and or companies reopened and rehired more quickly than many analysts h forecast. Still, it raises a key question for businesses and unemployed workers: How fast will rebound proceed? For hiring to continue at a solid pace, businesses will probably need to see signs that consumers are starting to resume ir pre-outbreak habits of shopping and dining out. Or evidence has also shown that job-market meltdown triggered by coronavirus has bottomed out. number of people applying for unemployment benefits has declined for nine straight weeks. And total number of Americans receiving such aid has essentially leveled off.

overall job cuts have widened ecomic disparities: While unemployment rate for white Americans was 12.4per cent May, it was 17.6per cent for Hispanics and 16.8per cent for African-Americans. Even with surprising gain in May, it may take months for all those who lost work in April and March to find jobs. Some ecomists forecast rate could remain in double-digits through vember elections and into next year. For weeks, ecomists h warned that unemployment in May could hit 20per cent or more.

street protests over George Floyd's killing that led to vandalism and looting in dozens of cities did t affect Friday's figures, which were compiled in middle of May. But business closings related to unrest could show up in June report. A few businesses are reporting signs of progress even in hard-hit industries. American Airlines, for example, said this week that it will fly 55per cent of its U.S. routes in July, up from just 20per cent in May. And Cheesecake Factory said one-quarter of its nearly 300 restaurants have reopened, though with limited capacity. Sales are at nearly 75per cent of levels reached a year ago, company said. Erica Groshen, a labor ecomist at Cornell University and a former commissioner of Labor Department's Bureau of Labor Statistics, said hiring could ramp up relatively quickly in coming months and reduce unemployment to low double-digits by year's end.

“n my inclination is that it will be a long, slow slog,” she said.

Until most Americans are confident y can shop, travel, eat out and fully return to ir or spending habits without fear of contracting virus, ecomy is likely to remain sluggish. Gwyneth Duesbery, 22, returned this week to her job as a restaurant hostess in Grand Rapids, Michigan, as Bowdie's Chop House prepares to reopen with tables 6 feet apart and seating capacity reduced to about one-quarter.

“I am concerned that it will expose me to potential diseases, and expose ors, matter precautions that we take,” she said. “It's kind of uncharted waters.”