Upending expert predictions, the U.S economy added 2.5 million jobs in May and the unemployment dropped to 13.3 percent, according to the Labor Department. This, after months of pandemic-related shutdowns and layoffs. CEI experts welcomed news of the rebound and pointed to further reforms to aid recovery.
Statement by Ryan Young, CEI senior fellow:
“I never thought a 13.3 percent unemployment rate would be good news, yet today it indicates that many of the shutdown-related job losses may have been temporary, though to be clear, it is too early to know for sure. It helps that governments at all levels have waived around 600 regulations that were blocking the COVID-19 response and the economic recovery. Policy makers should keep that momentum going by making those waivers permanent and waiving more job-blocking rules, such as occupational licensing and excessive permitting requirements. Institutional safeguards such as automatic rule sunsets and ongoing reviews of existing regulations can provide long-term help by preventing this regulatory sludge from building back up and harming the next crisis.”
Statement by Sean Higgins, CEI labor policy expert:
“The unexpectedly good news of Friday’s jobs report that 2 ½ million jobs were added in the last month is a rather inspiring testament to American ingenuity. Faced with an unprecedented crisis that forced businesses to completely shut down and workers to stay at home, those same companies and workers didn’t give up and instead improvised and found a way to get back to business. An unemployment rate of 13.3 percent rather than the expected 20 percent is as clear a bit of evidence as we could get that the best way to keep the economic recovery going is to simply allow businesses to re-open.”