Biden “extremely optimistic” on May jobs report, economists less
The United States Bureau of Labor Statistics released its latest employment report Friday showing that the US economy gained 559,000 jobs in May. And while President Joe Biden has expressed optimism about the report, economists are less enthusiastic.
“This morning’s Bureau of Labor Statistics employment report showed a modest rebound in hiring in May from the disappointing April report, with 559,000 non-farm payroll jobs added,” the chief economist said by Fannie Mae, Doug Duncan. “However, that number was lower than consensus expectations and is still somewhat anemic if expected growth expectations are to be met.”
The report showed that the unemployment rate fell 0.3 percentage points to 5.8% in May. Earlier this week, a report generated using ADP employment data showed that the market could expect to create nearly a million jobs in May, which is significantly higher than the 559,000 created.
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Despite this disappointment, Biden said there was reason to be optimistic. During a press briefing after the jobs report was released, Biden said the United States is the only major economy where economic projections are stronger today than they were in 2020.
“No other great economy in the world is going as fast as ours,” he said. “No other economy is gaining jobs as quickly as ours.”
He attributed the growth to the bold action of the recently adopted US bailout, citing that 52% of Americans are fully immunized and 75% of older Americans are vaccinated.
As the economy continues to improve, some have criticized the federal government’s unemployment benefits for keeping the unemployment rate low. Many states now completely reject supplementary employment benefits or restore more proof of hardship required to receive these benefits.
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Biden acknowledged the barriers to adding jobs, but said federal aid continues to make sense as it is currently structured.
“Access to child care is one of the biggest barriers to preventing parents from returning to work,” Biden said, adding that the upcoming child tax credit payments will help alleviate this burden. “The temporary increase in unemployment that we have enacted has helped people who have lost their jobs through no fault of their own and may not have been able to get the vaccine yet. But it will expire in 90 days, and it makes sense that it expires in 90 days. “
“I am extremely optimistic and I hope you are too,” he said.
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Rising house prices threaten to overheat the summer housing market
An economist said May’s jobs report was lower than expected, however, other economic factors could point to increased job gains in the coming weeks.
“The decrease in initial unemployment insurance claims in recent weeks, the continued strong demand for workers, as evidenced by the high level of job vacancies, and other data showing an increase in economic activity, indicate an increase in hiring over the summer, “Mike Fratantoni, Mortgage Bankers Association senior vice president and chief economist, said. “The MBA is sticking to our forecast of an unemployment rate of 4.5% by the end of the year.”
The economy continues to improve, but the unemployment rate has yet to return to pre-pandemic levels. If you are having difficulty with your current income or need help with your personal finances, contact Credible to get answers to all your questions by a personal loan expert.
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