On Tuesday, data released from the US Labour Department had reflected an ambivalent texture with layoffs easing in April, during the peak of the pandemic outbreak in the United States, while the recruitments were whacked away to a record low as anticipated amid a nationwide lockdown, suggesting the US labour market could take a while to reach a pre-pandemic level, though the pace of recovery might not be as slow as the analysts were gauging initially.
In point of fact, the monthly JOLTS (Job Openings and Labour Turnover Survey) data released from the Labour Department had revealed a decline in hiring to an all-time low, though a decline in layoffs and discharges by 3.8 million in April to 7.7 million came as a shimmering ray of hope for the US economy, although the readings remained as the second-highest since the US Government had started off tracking down the data back in the 2000s.
Analysts wrangle over JOLTS data after record rebound in US non-farm payroll in May
If truth is to be told, the Wall St. analysts seemed to be on separate grounds over the mixed JOLTS data for April, when the US economy was facing off the steepest economic downturn due to the pandemic outbreak, as a number of analysts were betting on to the latest leg of upbeat US economic data including a surprise 2.5 million job gains in May which the US president Donald Trump had branded as the greatest rebound of US economy last week.
Nonetheless, although the April JOLTS data comes over the heels of a confirmation that the US economy had entered into a recession in February this year, referring to a histrionic rebound in job gains which would likely to follow an uptick in consumer spending after months of lockdown as witnessed in China, a research director at Indeed Hiring Lab, Nick Bunker said after release of April JOLTS data, “We may continue to see elevated rates of layoffs and job cuts continue to spread to other sectors, but the tidal wave of layoffs appears to be behind us. ”