June 4, 2021 3:49 PM | With information from EFE
15 minutes. The unemployment rate in the United States (USA) fell 3 tenths in May, to stand at 5.8%, the first time it has fallen below 6% since the start of the pandemic. This was revealed this Friday by the Bureau of Labor Statistics (BLS).
After knowing this information, President Joe Biden assured in a speech in Delaware, where he has his private residence, that it is a “historic progress” for the United States.
“Today’s jobs report demonstrates historic progress for American families and for the nation’s economy (…). None of this success is an accident or luck“Biden stated.
The unemployment rate, which last year went from 3.5% in February to 14.7% in April -when the COVID-19 pandemic had a greater impact in the US-, has been decreasing every month since then until reaching in 5.8%. This points to a strengthening of the labor market.
In addition, in the fifth month of the year, the US economy created 559,000 jobs. That is, more than double that of the previous month and one of the highest job creation data since August of last year in the US.
“No other large economy in the world is growing as fast as ours“said Biden.
Today’s jobs report shows historic progress for American families and the American economy. We added 559,000 jobs in May, created a record two million jobs in our first four months, and unemployment is at its lowest level since the pandemic started.
America is on the move again.
– President Biden (@POTUS) June 4, 2021
This figure, however, was slightly below analysts’ estimates.
Precisely, the president of the Republican National Committee (RNC) Ronna McDaniel criticized that the US economy has fallen “short” before expectations. The population sees “the prices of gasoline, food and other essential products through the roof,” he said.
“Biden and Democrats are preventing Americans from re-entering the workforce. As a result, they are holding back our economy, “McDaniel said in a statement.
Leisure leads job creation
In its analysis of job creation, the BLS highlighted “notable” increases in the leisure and hospitality sectors. Likewise, in private education, health and social assistance, according to data from the monthly report.
Specific, the leisure and hospitality sector added 292,000 workers to the labor market, as movement and business restrictions continued to ease in most of the country.
Almost 2-thirds of this increase, 186,000 jobs, occurred in food services and places to drink.
“Strong” growth was also observed in the recreation and gaming sector., with 58,000 more jobs; and in the hotel sector, with 35,000 new jobs.
Challenges to fill positions
The development in job creation, which recovered in May after a very low figure in April according to analysts, is a Sign that companies are looking to boost hiring, even though they face challenges filling vacancies.
In fact, according to a survey by the National Federation of Independent Business (NFIB), nearly half of small business owners in the US reported having job openings in May.
The most critical blame this situation on the reinforcement of subsidies by the Biden government and Congress. Some economists interpret it as a simple readjustment of the labor market through wages.
The reality is that the labor force participation rate, or the proportion of people working or looking for work, fell to 61.6% in May from 61.7% in April, but did not exceed the rate of 63.3 % registered in February 2020.
On the other hand, the report indicated that Median hourly wage increased in May by 15 cents to $ 30.33.
The unemployment data was released a day after it was published that the weekly number of applications for unemployment benefit in the US fell last week to 406,000, compared with 444,000 the previous week, still in a pandemic.
This is the lowest figure in more than a year when the COVID-19 pandemic hit the job market and took weekly applications to a record 6.8 million at the end of March 2020.