THE NEUTRAL ZONE
On Friday, the Labor Department stated that the federal unemployment rate declined from 14.7 percent in April to 13.3 percent in May. Economists surveyed by Dow Jones expected unemployment to rise to 19.5 percent in May, so the results seen on Friday were better than expected.
House Minority Leader Kevin McCarthy (R-CA), stated in a phone interview, “This is not good news, this is great news … and it will only continue.” McCarthy also defended the GOP’s decision to hold off on another relief package. During a press conference on Friday, President Donald Trump “effectively claimed victory over the economic crisis and COVID-19,” but drew swift backlash when he stated that George Floyd would be pleased with the economic news.
In addition, economic recovery was not the same across the board, as the unemployment rate for black Americans rose slightly to 16.8 percent in May. The May unemployment rate is still “higher than any point in the Great Recession,” Jay Shambaugh, an economist at the Brookings Institution, stated, adding, “You need a lot of months of gains around this level to get back to the kind of jobs totals we used to have.”
May’s Jobs Report Brought Good News — But Not For Everyone – FiveThirtyEight – 6/5/2020
The unemployment rate fell for both men and women, which is noteworthy because women experienced more job losses during the first few months of the pandemic. But the unemployment rate for black workers (and particularly black women) actually rose from April to May — further exacerbating the racial disparities in which workers are out of a job.
American unemployment falls, but normality is still far away – The Economist – 6/5/2020
Although the American labour market remains deeply troubled, President Donald Trump nonetheless convened a hastily called press conference to hail the news and declare the country back on the road to better days.
Strong Jobs Report Could Show The Worst Is Over – PYMNTS – 6/5/2020
May’s surge back to job gains might have even been greater except that many unemployed workers might not be trying to rejoin the labor force. After all, special pandemic benefits mean that unemployed workers receive an extra $600 weekly, so some are getting more from unemployment insurance than their old jobs paid.
‘A Great Day’: Chris Wallace Explains How Newest Jobs Report Could Make Trump’s Reelection Case ‘A Lot Easier’ – The Daily Caller – 6/5/2020
Appearing on “America’s Newsroom” to discuss the numbers, Wallace said the “optimism” Trump has displayed about a quick economic recovery, doubted by many, “looks more solid today.” “It really has been a great day for the country,” Wallace said. “It shows the resilience of the American economy and it shows the political resilience of Donald Trump. And, you know, the polls hadn’t been looking particularly good.”
Joe Biden on Twitter, 6/5/2020: Let’s be clear about something: The depth of this job crisis is not attributable to an act of God — but to the failure of a President.
Ryan Fournier on Twitter, 6/5/2020: The unemployment rate just fell to 13.3%. 2.5 MILLION jobs were added in May. Much quicker than the “experts” expected. Trump has the magic wand!
Robert Reich on Twitter, 6/5/2020:
—The Black unemployment rate just ROSE
—More than half of Black Americans are now unemployed
—The racial wealth gap is as bad now as it was in 1968
But please, tell me again about Trump’s “stunning” economy.
Varney & Co. on Twitter, 6/5/2020: Following today’s positive jobs report, National Economic Council Director Larry Kudlow says the Trump administration wants to move out of the rescue phase, to more long-term economic growth policies. #Economy #Jobs #Trump2020 #Kudlow #China #VarneyCo