Recently released numbers from the Bureau of Labor Statistics indicate that the economy added a whopping 2.5 million jobs in May. This figure surprised nearly all economists who were forecasting up to 8 million job losses. This very positive number signals the beginning of a robust recovery from the deep, yet short-lived recession.

In January and February of this year, it appeared that the economy was on track for its best economic growth year in nearly two decades. GDP last grew at annual rate of 4% in 2000. In 2020, prior to the Coronavirus pandemic, 4% growth was possible this year.

But then the Coronavirus forced nearly the entire economy to shut down in Mid-March. The complete shutdown lasted until the end of April. Beginning in May the economy began to slowly re-open. But by the end of May a total of 40 million workers had become unemployed.

Nearly all economists forecasted that the unemployment rate for May would increase significantly from the 14.7% rate recorded in April. Most economists were forecasting an unemployment rate in the 20% range. Yet the data shows, the number of jobs added to the economy in May, exceeded 2.5 million.

That means the recovery from this deep recession brought on by non-economic factors, is over and the recovery has begun. Very few economists thought the recovery wouldn’t begin until the end of the summer at the earliest and most likely in the Fall. Looks like they missed the mark here.

READ: https://www.bizpacreview.com/2020/06/08/latest-job-numbers-show-the-v-shaped-recovery-has-already-begun-931641

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