The Unemployment and Job Numbers For May 2020. But There Is A "Catch"

The U.S. Labor Department reported that 2.5 million jobs returned to the economy in May and that the unemployment rate came in at 13.3% from April's 14,7%.  The news was swiftly hailed by Trump, Pence, the Wall  Street Journal, CNBC Financial and the Fox News Network as a great accomplishment and said the numbers were a surprise because earlier projections were not so rosy.  But the numbers did not add up to this writer, especially the unemployment number if the economy lost 38 million jobs due to the pandemic as earlier reported by the Department.

Those who were glowing about the report are all Trump supporters who see Trump struggling during this re-election season.  And then came the "catch" the next day when the full report was reviewed.  The last paragraph acknowledged the Labor Department made errors in counting the unemployed for April and May saying the real unemployment is worse than the numbers indicated.  That April's unemployment, if corrected, the rate would have been 19.5% instead of the reported 14.7%.  And May's number would have been corrected to 16.3% from the reported 13.3%.  Those two months adjustments would move the unemployment rate a total of 7.8% higher than first reported.  The other problem with the May report is it covered only the first 10 days of May.  The bottom line is the unemployment rate is the highest since the great depression.

The miscount also  raises the possible question in this writers mind about the Trump administration being involved in wanting to see a lower unemployment count to help with his re-election.  We know that two weeks ago his administration announced they would no longer give a update on the future of the economy that has been a tradition for years to keep the American people informed.  And we know from the Commerce Department report that the first quarter GDP came in at a negative 5% annual rate which is expected to more than double in the second quarter.

With Trump's approval rating trending downward, the people can expect the balance of this election year to be filled with Trump's fake news and personal attacks.