US labor market unexpectedly improves in May

The US economy unexpectedly added jobs in May after suffering record losses in the prior month, offering the clearest signal yet that the downturn triggered by the Covid-19 pandemic was probably over, though the road to recovery could be long.

The Labor Department's closely watched employment report on Friday also showed the jobless rate falling to 13.3 percent last month from 14.7 percent in April, a post World War Two high. It came on the heels of surveys showing consumer confidence, manufacturing and services industries stabilizing.T

Economic conditions have significantly improved as businesses reopened after shuttering in mid-March to slow the spread of Covid-19.

Nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April. Economists polled by Reuters had forecast the unemployment rate jumping to 19.8 percent in May and payrolls falling by 8 million jobs.

US stock index futures sharply extended gains. The dollar rose against a basket of currencies. US Treasury prices fell.

"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 pandemic and efforts to contain it," The Labor Department said in a statement.

Trump congratulates self on US jobs report, will hold news conference Friday 

President Donald Trump on Friday sent a tweet taking credit for a stunning US jobs report that showed the country's unemployment rate dropped during the coronavirus pandemic, and then announced he would hold a news conference at 10 am (1400 GMT).

"Really Big Jobs Report. Great going President Trump (kidding but true)!" Trump wrote within minutes of the government releasing the employment report for May.