May Jobs Report
KPMG Chief Economist Constance Hunter provides her analysis of the May 2021 Jobs Report.
Today's May jobs report showed that the economy added 550,000 new jobs. Now this represents a speed bump compared to what many economists were expecting back in the euphoric days of march when we added almost a million jobs and when the pace of vaccinations seemed to be gaining speed. We believe that the pandemic is causing these speed bumps to economic growth and in jobs growth in particular. When we look under the hood at the data we can see that 7.9 million people were absent from their jobs due to either closure or less available business, as a result of the pandemic. Additionally, 48% of working age adults had not received even one shot of a vaccine at the time that the data was collected. So, when we add all this together we think that there is still scope for improving jobs data in the months ahead as vaccinations rise and as the economy continues to open.