The unemployment rate was anyway high, and this pandemic just boosted it. Many people lost their jobs, and many did not even get any last year. The economy was falling, and things were getting worse.
What is the news?
After April’s disappointing reading about the unemployment rate, the U.S. added 559,000 employment in May 2021. In addition, with the news, the U.S. Bureau of Labor statistics on Friday revealed that the unemployment rate drops to 5.8%.
Do you know? The number of jobless people in the U.S. dropped to 9.3 million, approximately half a million.
While such news is welcomed and enjoyed, we still can not oversee the unemployment rate, which was pre-pandemic. The rate has dropped to 5.8%, but we were at 3.5% pre-corona, so you know how much the country has to go down more on the unemployment rate.
What is stopping employment?
More than a year has passed away, and this coronavirus pandemic has been successfully ruining humans’ lives and their careers. Graduates are begging for work; undergraduates are soliciting for internships; jobless people are requesting jobs. Everyone is looking for something here and there because we all are still unaware of what worse can happen in the world.
Millions of businesses reopen and expand operations at the same time, which is also leading to unemployment. In addition, working parents are worried about the lack of childcare; older people prefer to get early retirement, and the alarm of COVID-19 are the reasons for the unemployed on the sideline.
How many jobs were sent last month?
On Thursday, the National Federation of Independent Business revealed that around 48% of small business owners reported vacant job hiring requests last month.
The fourth continuing month, the May scale, has smashed the records. The 48-year historical reading of 22% was hit by May scale that was 26 points higher.
There are republicans of the U.S. who are even accusing the federal weekly top-up of $300 to provide unemployed facilities for discouraging the unemployed from hunting for jobs.
Following the blame, twenty-five states, driven by the authorities of Republicans, planned on withdrawing from the federal unemployment programs, including the weekly top-up.
“As we have been alarmed over the past month, we should avoid singular narratives,” Lydia Boussour, lead U.S. economist for Oxford Economics, wrote in a note to clients. “The May jobs is evidence that there are still multiple labor demand and labor supply constraints at play including the virus, unemployment benefits, childcare issues, and early retirements.”
What has the U.S. planned for its unemployed citizens?
The higher wages are when few people are running behind too many job vacancies. There was an increase of 21 cents of average hour earnings on private companies in April, and the month may make it reach $30.33.
After observing the drop in unemployment data of the past two months, The Bureau of Labour Statistics says that the rise in hiring is related to improving the Corona Wave.
The businesses that the Coronavirus pandemic hit mainly were Leisure and Hospitality. Everything just stopped for months, and the company and their employees were hoping for things to get better. This business had also added 292,000 job vacancies last month. Manufacturing companies and organizations also add around 23,000 job vacancies in May. The factories also hunt for good and enough workers who can provide them with 40 hours in a week and 3.3 hours on their overtime days. The public and private education sector also joined with the hiring wave and added new job hiring as the schools and colleges resume after the vaccination and testing for Corona-19. They said around 18,000 jobs in their sector.
Yes, it would still be a challenging ride to increase employment and decrease the unemployment rate, but if we all are together in this, we might at least reach the level the rates were pre-pandemic. So, let’s have hope and see what else the U.S. has in mind for its citizens in the future.