Trump touts 'incredible numbers' as US unemployment rate falls to 13% despite pandemic

White House celebrates surprise jobs report

The unemployment rate in the United States declined to 13.3 percent in May, according to the latest report from the Bureau of Labour Statistics, marking a slow resurgence of industries impacted by the coronavirus pandemic.

The May report was initially expected to show an increase from the previous unemployment rate of 14.7 percent in April. However, the Bureau of Labour Statistics noted sharp declines in workers experiencing temporary layoffs, or furloughs, in businesses that were forced to close or reduce staff during the Covid-19 outbreak.

According to the bureau, employment rose across the hospitality and construction industries as states began to reopen across the country throughout May. Education and health services, as well as retail trade and leisure also saw significant hiring increases.

President Donald Trump celebrated the news on Friday morning, writing in a series of tweets: “Really Big Jobs Report. Great going President Trump (kidding but true)!”

Tagging a Fox Business anchor, the president added: “THESE NUMBERS ARE INCREDIBLE!”

Nonfarm payrolls jumped up by more than 2.5 million jobs — a gain that shocked most analysts after more than 20 million Americans reported a loss of work in April.

In a statement, the Labour Department said the improvements “reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain it”.

Before Friday, many had expected the unemployment numbers to be worse than those during the Great Depression.

Still, almost the entirety of job growth that began after the Great Recession remained wiped out by the pandemic and its impact on businesses nationwide, when restaurants and stores were forced to close their doors to the public as state and federal officials declared emergencies and issued stay-at-home orders to curb the spread of Covid-19 infections.

Still, experts warned the economy was still in a fragile place despite the surprising jobs report.

“Today’s jobs report is much-needed good news for the American labor force. It shows that hiring is picking up steam at a rapid rate. But it would be a dangerous mistake to think we are out of the woods,” Josh Lipsky, director of programmes and policy at the Atlantic Council’s Global Business and Economic Program, said in a statement sent to The Independent.

He added: “Even with today’s gains the US still has one of the highest unemployment rates in the world. The reality is that millions of Americans are hurtling toward a financial cliff. There is no plan in place when the unemployment enhancement runs out next month.”

The White House meanwhile indicated on Friday the president was supportive of another coronavirus relief package.

In an interview with CNBC, Vice President Mike Pence said Mr Trump had expressed his “strong openness” towards a new bill. He also celebrated the jobs report, suggesting it reflected a recovery of the US economy.