TOPLINEWhile Friday’s optimistic jobs news showed the U.S. added 2.5 million jobs in May rather than the loss of 9 million that most experts were expecting, the economy is not yet out of the woods. Here’s what could derail the U.S. recovery. Key backgroundThe U.S. economy added 2.5 million jobs in May as the unemployment rate dipped to 13.3% from 14.7% and more than 20 million jobs lost in April. A data “misclassification error,” acknowledged by the Bureau of Labor Statistics in the footnotes of May’s report, means that the true unemployment rate for the month was likely three percentage points higher than reported—about 16.3%. What to watch forAs lawmakers struggle to reach an agreement over extending the CARES Act’s emergency benefits, May’s jobs report has the potential to derail the next round of federal rescue legislation.

Source: Forbes June 08, 2020 16:07 UTC