( Washington, 6th June 2020 ) The US Department of Labor announced on Friday that the non-agricultural employment population increased by 2.5 million in May, and the unemployment rate fell from a record high of 14.7% in April to 13.3%, which unexpectedly caused the Wall Street stock market to rise. .
The unemployment rate fell to 13.3% in May, which was lower than market expectations of 19.6% and also lower than 14.7% in April. In May, non-agricultural jobs increased by 2.509 million, the largest increase since World War II, and also far exceeded market expectations of a decrease of 7.5 million.
However, economists believe that the data are "wrong" and the unemployment rate should actually be 16.3%.
The coronary disease epidemic has led to many blockades ordered throughout the United States. A large number of businesses have been forced to shut down and the economy has been shut down on a large scale. As a result, more than 21 million people were unemployed from March to April. The labor market that has grown for 10 consecutive years before the outbreak of the epidemic also quickly collapsed. .
Only 1.88 Million People Applied For Unemployment Benefits Last Week
As the epidemic slowed, from late April onwards, states throughout the United States loosened their epidemic prevention measures and reopened their economies. The terrible nightmare in the industry caused by various previous epidemic prevention and blockade restrictions, and the terrible nightmare in the job market seemed to finally see the end. . According to the Ministry of Labor announced the number of new applicants for unemployment benefits in the previous week (the week ending May 30) was 1.88 million.
Not only is this number much lower than the 2.12 million people in the previous week, but it has also fallen below 2 million for the first time since the outbreak in the United States in March, and it has also fallen for the ninth consecutive week. The data is slightly higher than the 1.8 million estimated by economists on the financial website MarketWatch.
However, Citi economists believe that although the number of people applying for unemployment benefits for the first time is an indicator, they seem to exaggerate the depression of the job market. Instead, the "number of people who continue to apply for unemployment benefits" can better reflect the current status of the job market.
Three Major US Stock Indexes Soared
The unemployment rate announced by the United States in May fell to 13.3%, and the outside world is also optimistic that the economy will accelerate its rebound. US stocks opened up on Friday, the final three major indexes rose, and the Dow Jones Industrial and Commercial Index rose 829 points.
The Dow rose 829.16 points, or 3.15%, to close at 27110.98 points; the S&P 500 index rose 81.58 points, or 2.62%, to close at 3193.93 points. The Nasdaq index, which is dominated by technology stocks, rose 198.269 points, or 2.06%.
The London FTSE100 index rose 142.86 points or 2.25% to close at 6484.30 points. The Frankfurt DAX30 index rose 417.12 points or 3.36% to close at 12847.68 points. The Paris CAC40 index rose 185.81 points or 3.71% to close at 5197.79.
Economists believe that the latest employment data from the United States is strong, which eases the pressure on the Federal Reserve to cut interest rates, prompting the Federal Reserve not to maintain interest rates near zero for a long time.
Tufts University economists believe that the Federal Reserve will maintain the federal funds index interest rate unchanged in the next few quarters, but if the economy continues to improve, it will then consider adjusting interest rate levels.
Jefferies securities economists also agree with the above view, believing that the employment data will not immediately change the Fed’s view on the economic outlook, and the authorities will also keep the quantitative easing measures unchanged.
The Fed will hold an interest rate meeting next week, and Chairman Powell will meet with reporters later. Interest rate futures traders generally expect that the Fed will maintain interest rate policy by then.
**Info & Image are taken online
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