May jobs report is a promising sign that the recovery is on track: Initial comments from EPI economists
2 min read
EPI economists offer their initial insights on the May jobs report below. While they see strong growth in employment, including in leisure and hospitality, the U.S. labor market is still facing a large jobs shortfall. Relief and recovery measures—including expanded unemployment benefits—should be sustained for workers and their families as the economy continues to recover.
From senior economist, Elise Gould (@eliselgould):
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+559k jobs in May is slightly better than the average growth of the prior 3 months. If this pace continues over the next year, we will likely get down to 4{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} unemployment by mid-2022 and will be fully recovered before the end of 2022, fully absorbing losses plus population growth.
— Elise Gould (@eliselgould) June 4, 2021
The labor market is down 7.6 million jobs since February 2020, but the total jobs shortfall should take into account pre-pandemic labor market trends or at least growth in the working age population. When those are included, the jobs shortfall is in the range of 8.6-10.7 million. pic.twitter.com/njpUX7KGPx
— Elise Gould (@eliselgould) June 4, 2021
From senior economist and director of policy, Heidi Shierholz (@hshierholz):
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The labor market added 559,000 jobs in May, very strong growth in line with expectations. The unemployment rate dropped to 5.8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, and most of that drop was for “good” reasons, people getting jobs. 1/
— Heidi Shierholz (@hshierholz) June 4, 2021
Employment in leisure and hospitality (l&h) grew by 292,000. Over the last two months, l&h has added 620,000 jobs, roughly three-quarters of the economy-wide jobs added over that period. Folks this is just not signaling a massive labor supply shortage. 5/
— Heidi Shierholz (@hshierholz) June 4, 2021
