The May jobs numbers were considerably better than most analysts had expected with the economy reportedly adding 2,509,000 jobs, while the unemployment rate fell by 1.4 percentage points to 13.3%. This improved labor market picture should not have been surprising since many businesses across the country had reopened by the survey week in mid-April. The high number of unemployment insurance claims, continuing through May, likely gave a wrong picture, as delays in processing caused claims to appear much later than they had been filed.

The job growth was widespread across sectors but was nowhere close to being proportionate to earlier losses. Restaurants accounted for more than half of the job growth, adding 1,370,600 jobs, but employment in the sector is still down by 36.6% from year-ago levels. Health care added 312,400 jobs in May, but employment is still down by 6% from year-ago levels. This is the result of people deferring nonessential procedures. Retail added 367,800 jobs in May, but employment was still 12.5% below year-ago levels. Department stores have been especially hard hit with employment down by 21.2% over the last year. By contrast, employment at online retailers is down by just 6.9% since May 2019.

Some industries continued to be big job losers. Airlines laid off 50,300 workers in May; employment is now 23.4% below year-ago levels. The motion picture industry shed another 10,700 jobs, leaving employment 51.1% lower than May 2019. Hotels lost 148,200 jobs, with employment down 50.4% from last May. City transit employment rose by 10,100 but is still 34.1% below year-ago levels.