- The coronavirus pandemic has devastated the U.S. economy
- Prior to the pandemic, the U.S. economy was booming
- Unemployment rates were under 3.5%
- The Dow Jones Industrial Average hit a historic high of 29,000 in February 2020
- Homeownership levels hit an all-time high
- Mortgage rates were at an all-time low
- Home prices have been appreciating year after year that both HUD and the FHFA increased FHA and Conventional loan limits
- Conforming and FHA loan limits increased for four years in a row due to rising home prices
- There were more jobs available than qualified workers
- Then the pandemic hit and the economy came to a standstill
- State governors issued executive stay at home executive orders
- Millions of businesses were closed
- The economic impact was beyond devastating
- Over 43 million Americans filed for unemployment claims
- Then a handful of states started to reopen three weeks ago
- Many states have been reopening in phases
- Stores were reopening up again
- Today’s breaking news of the U.S. Economy Add 2.5 Million Jobs was a pleasant shock to everyone
Economy Add 2.5 Million Jobs In May Surprising Economists
The month of May saw the largest jobs gain ever in the history of the United States.
- The U.S. economy add 2.5 million jobs in the month of May
- This shocked economists and signaled a great sign for a quick economic recovery from the coronavirus pandemic
- The news of nonfarm payrolls rising by 2.5 million in June came as a pleasant surprise, even to the White House
- The unemployment rate fell to 13.3% percent which is well below expectations
- Wall Street expectations for May was a loss of 8.3 million jobs and an unemployment rate of 19.5%, which marks a higher number than those of the Great Depression
- Most of the job gains came from Americans who were furloughed and/or laid off due to the COVID-19 pandemic
The recently depressed leisure and hospitality industry represented over 50% percent of the job gains.
Economy Add 2.5 Million Jobs Signals A Fast Economic Recovery After The COVID-19 Pandemic
The breaking news of the U.S. Economy Add 2.5 Million Jobs signals a fast economic recovery after the coronavirus pandemic.
- The economy was doing great and booming prior to the pandemic
- It was the fastest plunge of the U.S. economy in history
- The whole country was in lockdown for over two months
- Many thought the U.S. economy would lead to another Great Depression as well as a greater housing market meltdown than the 2008 financial crisis
The addition to the 2.5 million jobs in May signals the damage to the economy was not as severe as many thought.
Stocks Surge After News
The Dow Jones Industrial Average skyrocketed over 800 points due to the job gains news. Yields on the 10-year U.S. treasuries rose as well to 0.91%. President Donald Trump had a press conference to talk about the positive economic news.
The U.S. economy was booming prior to the pandemic. Never in history has the economy been so good under the Trump Administration. The unemployment rate was below 3.5%. Americans were spending money. The U.S. economy was turbocharged. Most Americans 401ks rose over 60% since President Trump took office. Then the pandemic hit. Everything went downhill. The liberal fake news media were hoping the economy to tank to get Democrats in both Houses of Congress and defeat President Trump. The Trump Administration was proactive and quickly worked on the coronavirus economic stimulus package. As days passed, the economy was getting more damaged. Many Americans thought another housing crash was imminent. The pandemic turned the mortgage industry upside down. However, housing numbers indicate there is an increase in home buyers. Purchase mortgage applications are up and have been increasing weekly. Lenders that have suspended alternative lending programs such as Non-QM loans have reopened. Mortgage rates are expected to remain low into 2021. After the release of May job numbers, economists are now confident the U.S. is on the road for the fastest economic recovery in history. We will see what June numbers will be. It may be lower due to the George Floyd protests and riots. However, America’s economic engine is strong. Even with the pandemic and the riots due to the death of George Floyd, the economy wants to roar. This is a developing story. Stay tuned for updates in the coming days and weeks.
