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The U.S. unemployment rate unexpectedly dropped to 13.3 percent in May, potentially signaling early signs of a labor recovery from the coronavirus pandemic. But the travel labor sector continues to see a catastrophic level of unemployment.
Employers added 2.5 million jobs in May, leading the unemployment rate to drop by 1.4 percent, according to a report released Friday by the U.S. Bureau of Labor Statistics. The positive signs of growth show some sectors may already be recovering from coronavirus shutdowns that dragged the U.S. economy beginning in the second half of March.
“These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (Covid-19) pandemic and efforts to contain it,” the Labor Department said in a release. “In May, employment rose sharply in leisure and hospitality, construction, education and health services, and retail trade.”
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Leisure and hospitality jobs increased by 1.2 million in May, following losses
of 7.5 million in April and 743,000 in March. But unemployment remains extremely high compared to 2019 levels.
May 2020 leisure and hospitality unemployment was nearly 36 percent, down from just over 39 percent in April. However, the unemployment rate for the sector was only 5 percent in May 2019.
There was also question regarding how the Labor Department classified the unemployment rate for May, especially in light of so many companies furloughing staff in lieu of an actual layoff. Had these employees — who are technically still on the payroll despite not receiving their salaries — been classified as unemployed, the unemployment rate would have been three points higher, the Labor Department noted in its release.
It will still likely be a while before the travel sector says it is in a recovery. The leaders of companies and organizations like Marriott and the American Hotel & Lodging Association have repeatedly said the pandemic is the worst thing to happen to the travel industry in recorded history, besting the 9/11 terrorist attacks and the 2008 financial crisis combined.
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