The Labor Department's May jobs report stunned economists Friday morning with new data suggesting the coronavirus-wracked economy is recovering faster than anticipated.
The U.S. added 2.5 million jobs in May, and the unemployment rate decreased to 13.3 percent from April's 14.7 percent. These numbers are well below what many economists predicted, but is it too soon to call it a comeback?
"I don't think it's premature to believe we've turned a corner," Labor Secretary Eugene Scalia told Cheddar on Friday. "I actually think we're in an even better position today than at the time these surveys were taken. This reflects where we were in mid-May. That's when the surveys were conducted, and we were reopening, but there were a lot of states that hadn't started yet."
The secretary said there was a consensus that the economy would begin to turn around in June, but these numbers came as a surprise to everyone, from Moody's Analytics to economists surveyed by the Dow Jones Industrial Average.
"What we know is that the turnaround started sooner, so next month's report should be even better than anybody had been predicting," he said.
The job gains occurred across multiple sectors, including manufacturing (225,000), construction (464,000), retail (368,000), and education and health services (424,000).
Scalia said he anticipates healthcare jobs to return quickly in the coming months.
The biggest gains, however, were in leisure and hospitality at 1.2 million jobs, an early sign that the sector could bounce back despite effectively shutting down under quarantine.
The secretary encouraged the continued reopening of the economy, but he urged caution as well.
"We need to remember the virus is still out there, and some of the precautions that we got accustomed to remain important," he said. "I think that if we're careful, if we're thoughtful, if we're disciplined, we can keep this growth going."
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