US adds 559K jobs as firms still struggle to fill positions
Jun. 05, 2021 at 6:00 am
CHRISTOPHER RUGABER , AP Economics Writer
U.S. employers added a modest 559,000 jobs in May, an improvement from April’s sluggish gain but still evidence that many companies are struggling to find enough workers as the economy rapidly recovers from the pandemic recession.
Last month’s job growth was above April’s revised total of 278,000, the Labor Department said Friday, yet well short of employers’ need for labor. The unemployment rate fell to 5.8% from 6.1%.
The speed of the rebound from the recession has caught employers off guard and touched off a scramble to hire. The reopening of the economy, fueled by substantial federal aid and rising vaccinations, has released pent-up demand among consumers to eat out, travel, shop, attend public events and visit with friends and relatives.
Either way, the economy is recovering at a healthy pace, and companies are still seeking workers: Job postings in late May were nearly 26% above pre-pandemic levels, according to the employment website Indeed. Government data shows that posted jobs have reached their highest level on record dating back to 2000.
And consumers are opening their wallets. In April, they increased their spending after a huge gain in March that had been fueled by the distribution of $1,400 stimulus checks. With more Americans feeling comfortable about staying in hotels and visiting entertainment venues, spending on services jumped.
Service industries, including banking, retail, and shipping, expanded at the fastest pace on record in May. The evidence suggests that consumers have embarked on a long-anticipated shift away from the large goods purchases that many of them had made while hunkered down at home to spending on services, from haircuts to sporting events to vacation trips.