Labor Market Improvements- A BLS Update

Subtle Signs Of Hope

The collapse in the labor market may have come to a halt sooner than expected as more people returned to work. There is still a long way to go to full recovery as we learn how to work in the “new normal”.

The U.S. regained 2.5 million jobs in May and the unemployment rate was predicted to rise to 19% and actually fell to 13.3%. These results go against a forecast of 7.25 million reductions and suggest that the economy began to revive last month after the worst economic crisis since the Great Depression of the 1930s.

State Economies Slowly Reviving

Every state began to reopen their economies to some degree in May and according to the Bureau of Labor Statistics (BLS), 2.75 million people who temporarily lost their jobs returned to work. Key sectors in the BLS suggest employment also rebounded by 464,000 in construction, another 368,000 in retail, and 225,000 in manufacturing. The only segment to shed another large chunk of jobs was government. Employment fell by 585,000, mostly reflecting school closures that put bus drivers, cafeteria helpers and others out of work.

A slew of more recent economic indicators also suggest economic growth has started to revive, even if just marginally.

We are pleased to report that many of our clients are starting to engage in “return to work” programs and looking at hiring plans in Q3. 

Check out open roles at King & Bishop and Finish Line Staffing Services.