United States Non-farm payrolls advance by 2.5 million jobs for the month of May 2020. The Unemployment rate decreases to  13.3 percent, which is a possible positive indicator that the U.S. economy is heading in the right direction as it slowly recovers from wake of (COVID 19) siege.

Coronavirus (COVI-19) Still plaguing the U.S. Economy

As America slowly begin’s to get back to work fighting against the heavy blistering waves of  the  (COVID-19) Pandemic. It may be to early to tell: however, it seems to be a slight bit of optimism in the atmosphere as May’s employment numbers may be an indication that the government stimulus injection could be taking a positive effect on the U.S. economy.

The economic disparity picture for Black unemployment continues to rise as it relates to other worker groups category of the report.  May unemployment numbers for African American’s rose by .1% from April’s 16.6 rate to May’s 16.7 percent results.   The virus of racism an the (COVID-19) Pandemic continues to produce the socio-economic barrier’s of inequalities for African American’s  throughout the U.S. economic spectrum. 

The unemployment rate decrease in May 2020 to 13.7 percent due to concentrated effort to contain the virus.  The U.S. Labor markets experienced a  sharp job insurgence in the leisure and hospitality, construction, education, and health services sectors according to the U.S. Bureau of Labor and Statistics. Approximately 1.9 million american workers file for jobless claims over the last week.  This has been a significant drop in fresh new claims compared to March and April 2020 jobless data.  

Marc Chandler, Bannockburn Global Forex, Managing Partner and Chief Market Strategist 
 Fresh Take on May’s 2020 NFP report

Marc Chandler is a renown leading political economist and a foreign exchange market analyst, writer, speaker, and professor. also frequent guest on CNBC, Bloomberg Television, and FOX Business offers his exclusive perspective  and insights for News Moves Markets Forex May’s JOB’s Non Farm Payroll Report:

 NEWSMOVESMARKETSFOREX.

Marc, so what is your perspective for May’s non-farm payroll 2.5 million job increase?

MC,

“I think due to the virus, there have been permanent and temporary lay-offs.  Economist and policy makers don’t really know how much of each.  As the economies began opening, some temp layoffs were called back.  Looking at the manufacturing jobs and workweek, it appears that those employees that did return worked a shorter week.  

MC,

Thanks Marc for your spot on analysis, keen insights and perspective concerning the current U.S. Employment and NFP outlook situation.  Please be sure to follow Mr. Chandler on his daily blog, Marc to Market, www.martomarket.com  Breaking down and Making sense of the Global Capital .  Also, Mr. Chandler has published two outstanding book’s that are a must read: (1).Making Sense of the Dollar  -Exposing Dangerous Myths about Trade and Foreign Exchange    (2).  Political Economy of Tomorrow –shows that the most significant problems of the economic system arise not from capitalism’s weaknesses, but its strengths.

May 2020 Jobs report

The change in March’s 2020 NFP release employment revised down from 492,000 from -881,00 to -1.4 million.   

See the full story of previous April 2020 NFP numbers;  Non-Farm Payrolls decend by 20.5M jobs, Unemployment rises to 14.7  percent April 2020.

• The unemployment rate moved lower  1.4 percent to 13.3% for  month of April 2020, while the private nonfarm payrolls average hourly earning decreased by $0.29 to $29.75, following a  gain of $1.35 in April.  

•  Bureau of Labor Statistics reports that employment rose in various sectors of May Professional and business services rose by 127,000 jobs in May to buildings and dwellings (+68,000) and temporary help services (+39,000).  

• Air transportation lost 50,000 jobs over the month, following a lost of 79,000 jobs in April.   
• ADP National employment report: Non-farm Private sector  employment decreased  -2,760,000 Jobs for the month of  May 2020
• Small Business  -435,000 National franchise  decreased -254,100 Jobs
• Goods producing Sector down 91,000  and Service providing Sector decreased by 344,000 jobs.   
  

• It is important to note that Non-farm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry.  Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.

• Revisions:   With these revisions, employment gain in   January and February combined were 57,000 less than previously reported.  After revisions, job gains have averaged 245K  per January and February.