On Tuesday, the monthly Job Opening and Labour Turnover Survey or JOLTS report had told that the US hiring had soared to a record high on May and layoffs had been slowed down substantially as businesses reopened, however, a slew of Wall St.
sceptics were quoted saying that the latest improvement in job data that comes over the heels of a number of encouraging signs signalling the shortest US recession on record might have been over, would likely to be overshadowed by a pandemic resurgence.
Apart from the upbeat JOLTS data which had shown that the US economy’s hiring was accelerated by 2.4 million jobs to 6.5 million in May, marking up the index’s biggest monthly gain since the Government had started off tracking the data back in the 2000s, Tuesday’s report from the US Labour Department had also shown an across-the-board rebound in job openings.
Though economists remained confused over the latest set of dialectical data that had shown a broad-based gain in US non-farm payrolls alongside a record US consumer spending, at the same time while more than 31.5 million Americans had been collecting unemployment checks.
However, a number of analysts were quoted saying that the data might be hard to read because of an additional $600 in unemployment benefits due to the pandemic outbreak, however, the package became nullified on the first week of July, but an unemployment rate of 11.1 per cent was difficult to square with the latest leg of US job gains, added some economists.
Analysts’ disbeliefs on US job gains grow as many businesses prepare to re-close
Meanwhile, when the Tuesday’s JOLTS’ data had revealed an all-time high US hiring spree of 4.9 per cent on a monthly basis compared to a growth of 3.1 per cent in April, addressing to a growing disbelief among the economists and analysts over the US economic data released over the past couple of weeks, a Chief Economist at MUFG in NY, Chris Rupkey said following the release of JOLTS data, “The labour market is hard to read right now with many cross-currents and anomalies as the country starts to get back up to speed.
It is hard to imagine these millions of job postings across the country are real. Our guess is many of the openings are merely leftovers from the best labour market in 50 years at the start of a year. ”