Daily US Times: US employers added a modest 559,000 jobs in the last month, an improvement from April’s sluggish gain but still evidence that many companies in the country are struggling to find enough workers as the economy rapidly recovers from the pandemic recession.
According to Labor Department data released on Friday, May’s job growth was above April’s revised total of 278,000, yet well short of employers’ need for labor. The unemployment rate in the US fell to 5.8% from 6.1%.
The speed of the rebound from the recession caused by coronavirus pandemic has caught employers off guard and touched off a scramble to hire. The reopening of the economy, fueled by rising vaccinations and substantial federal aids has released pent-up demand among consumers to shop, eat out, travel, attend public events and visit with friends and relatives.
Nela Richardson, chief economist at the payroll processing firm ADP: “There is a gap between the economy and labor market.”
She said, May’s gains in jobs are “more lackluster than one would expect given the strong state of economic growth.”
Many large chains, including Amazon, Chipotle, Walmart and Costco have raised starting pay to better attract applicants.
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