Wanna Know Why Joe Biden Is Smiling? The Economy Is Rocking.

June 6, 2021 Topic: U.S. Economy Blog Brand: The Reboot Tags: EconomyStimulusJobs ReportJoe BidenADP

Wanna Know Why Joe Biden Is Smiling? The Economy Is Rocking.

The figure marks a massive increase from April’s 654,000 and a record gain since June 2020 when the U.S. had eased coronavirus restrictions after the first deadly wave.

Here's What You Need to Remember: The swift vaccine rollout in the U.S. has pushed the economy to slowly recover, with states lifting coronavirus restrictions. And with a steady drop in new infections, more people are going out to eat at bars and restaurants and shopping in-store.

The number of added jobs in the private sector for May reached its highest point in nearly a year, as companies hired 978,000 workers, according to payroll company ADP, a big jump compared to the 680,000 predicted by economists for the same month.

The figure marks a massive increase from April’s 654,000 and a record-gain since June 2020 when the U.S. had eased coronavirus restrictions after the first deadly wave. April’s total was revised from 742,000.

“Private payrolls showed a marked improvement from recent months and the strongest gain since the early days of the recovery,” said ADP's chief economist, Nela Richardson. “Companies of all sizes experienced an uptick in job growth, reflecting the improving nature of the pandemic and economy.”

ADP’s report comes ahead of Friday’s official jobs report from the Labor Department, but the figures can vary substantially. 

The ADP report revealed that there was a spike in leisure and hospitality jobs, an industry that was hardest hit by the pandemic, as the sector added 440,000 new jobs in May.

Education and health services added 139,000, with most of the new jobs coming from health care, and trade, transportation and utilities added 118,000 jobs. 

Within the goods-producing sector of the economy, construction added the most jobs at 65,000, followed by manufacturing at 52,000 and natural resources and mining at 11,000. 

The goods-producing sector added a total of 128,000 new jobs, and the service-providing sector was responsible for 850,000 jobs.

“While goods producers grew at a steady pace, it is service providers that accounted for the lion’s share of the gains, far outpacing the monthly average in the last six months,” Richardson noted.

Job gains were similar across all different company sizes, as small businesses hired 333,000 workers, medium businesses with 50 to 499 employees added 338,000 jobs and large firms had 308,000.

The swift vaccine rollout in the U.S. has pushed the economy to slowly recover, with states lifting coronavirus restrictions. And with a steady drop in new infections, more people are going out to eat at bars and restaurants and shopping in-store.

The Centers for Disease Control and Prevention altered its guidance on vaccinated individuals, noting that they can be maskless indoors.

Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report and The Hill. This article is being republished due to reader interest.

Image: Reuters.