The economy is beginning to show signs of rebounding as states have started to reopen following months of lockdowns due to the coronavirus pandemic. The May jobs report released by the Labor Department on Friday (June 5) shocked many economists as there were 2.5 million new jobs added, and the unemployment rate fell to 13.3%.
According to CNBC, many financial experts expected the economy would shed more than eight million jobs and assumed that the unemployment rate would approach 20%.
The job gains were mostly driven by the leisure and hospitality industry, which saw 1.24 million new jobs in May.
As more states continue to reopen in June, economists are optimistic that the economy will continue to add jobs throughout the summer.
"With more states moving to loosen their lockdowns in the coming weeks, particularly in the populous Northeast, employment looks set to continue rebounding in June and beyond, although we still think it will be a long time before the labor market is anywhere near back to its pre-virus state," Michael Pearce, senior U.S. economist for Capital Economics, said according to Yahoo! Finance.
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