U.S. reports unexpected gain of 2.5 million jobs in May
SAN FRANCISCO - The stock market's meteoric rise was fueled by a shocking and surprising national labor report that said that the ranks of the nation's unemployed fell by 2.1 million people. The fundamentals of the U.S. economy and the desire to get back to work remain stronger than anticipated.
Many experts projected the loss of another eight million American jobs over the last month, but instead, a surprising reversal said labor lawyer & former EDD Director Michael Bernick noting, “A gain of 2.5 million jobs and unemployment actually going down.” Subject to revision, U.S. unemployment went from 14.7% down to 13.3%. “This is the first real, positive employment news we've had in actually, in almost three months,” said Mr. Bernick.
The biggest beneficiaries: restaurant and bar employees coming back to work and construction workers coming back to re-opened projects and healthcare. The president took no time in claiming victory.
“Today is probably, if you think of it, the greatest comeback in American history. But it's not going to stop here, It's gonna keep going,” said President Trump.
Because so many experts question the president's penchant for overstating things, we asked labor lawyer Mike Bernick if Uncle Sam's numbers are reliable.
“These are completely non-political numbers. They are issued by the Bureau of Labor Statistics. They have nothing, nothing to do with politics,” said Bernick. But, he also says a significant portion of these job gains are likely attributable not to the overall economy or actual work available, but to the Paycheck Protection Plan which brought many people back into the paid labor force.
In two weeks, when official state numbers come out, Bernick expects that California will have more job losses and higher unemployment.
“My sense is that actually California won't show job gains because, during this period in May, California was in almost complete lockdown,” said Bernick. And, if the Golden State observes and enforces social distancing, masking and other precautions, re-opening can be as successful as in other re-opened states.
“Particularly in Georgia, Florida and Texas, the number of hospitalizations haven't gone up, the number of infections haven't gone up,” said Bernick.
The president showed complete confidence after months of bad and worsening news. “We've got the greatest economy we've ever had, It will soon be greater than it was even before,” said Mr. Trump.
That, Bernick says, is quite a ways off, “We're still deep, deep, deep in a hole in terms of the payroll numbers and the jobs lost.” More than 21 million people remain unemployed which will take many, many months to recoup.