While the unemployment rate did fall to 5.8%, Biden’s jobs report still fell below the the expectations of job growth for the month of May:
JUST IN – United States jobs report misses expectations again, 559K added in May vs 675K estimated.
— Disclose.tv 🚨 (@disclosetv) June 4, 2021
Here’s more from CNBC:
Job creation disappointed again in May, with nonfarm payrolls up what normally would be considered a solid 559,000 but still short of lofty expectations, the Labor Department reported Friday.
Payrolls were expected to increase by 671,000, according to economists surveyed by Dow Jones.
The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate of 5.9%. An alternative measure of unemployment that includes discouraged workers and those holding parttime jobs for economic reasons edged lower to 10.2%.
May’s letdown came after April sharply undershot expectations, with the upwardly revised 278,000 still well short of the initial 1 million estimate that came with high hopes for an economy trying to shake loose its pandemic shackles.
The employment to population ratio, which some Fed officials have cited as an important gauge of labor progress, inched higher to 58% but remained well short of its pre-pandemic level of 61.1%. The labor force participation rate, another closely watched metric, edged lower to 61.6% as the size of the group fell by 53,000 with more than 100 million American workers remaining on the sidelines.
The jobs miss comes as employers widely cite a labor shortage as a critical factor in why more hiring is not happening. Some have cited generous unemployment business as well as child care issues and continuing fears about the coronavirus as obstacles to filling the 8 million vacant positions.
Rick Santelli had almostly perfectly predicted what the job growth numbers would be and explains why he thought they’d be on the low end:
CNBC’s Rick Santelli: Biden’s big government programs, extra benefits to blame for labor shortages affecting employers pic.twitter.com/V84vWt2Ss6
— RNC Research (@RNCResearch) June 4, 2021
In other words people are still enjoying the extra pandemic unemployment benefits rather than looking for work, which is essentially what the report claimed above. I think as long as those extra benefits are being given, Biden’s jobs report will keep missing expectations.