Historic jobs report signals fragile recovery. ‘I didn’t hire a single person back,’ says NYC restaurant owner

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

The U.S. labor market added 2.5 million jobs in May, the Bureau of Labor Statistics announced, surprising many who forecast another terrible month as the economy – broadly shut down in an effort to contain the coronavirus pandemic – limps back to life.

The unemployment rate dropped to 13.3% from 14.7% in April.

“These outcomes are huge surprises relative to expectations for several million more jobs lost and another large increase in the unemployment rate,” wrote JP Morgan analyst Michael Feroli.

While the slow reopening of the U.S. economy gets credit for the historic job gains, the Independent Restaurant Coalition warns that the employment gains are fragile.

Food services and drinking places accounted for half of the job gains in May, but employment only rose by 1.4 million. Restaurants and bars, among the businesses hit hardest by the coronavirus shutdown, lost 6.1 million jobs in March and April.

“I have not hired a single person back,” Amanda Cohen, chef and owner of Dirt Candy, a restaurant in New York City, told Yahoo Finance. Cohen is on the advisory board of the IRC, and is trying to help Dirt Candy and other restaurants survive the economic downturn.

The IRC has called for the implementation of a $120 billion restaurant stabilization fund to ensure that the path to recovery is sustainable and restaurants have the funds they need to operate at reduced capacity as a social distancing measure.

An employee of Junior's Restaurant arrives with her son to pick up a paycheck, Thursday, March 19, 2020 in the Brooklyn borough of New York. The restaurant company, which has closed its four locations due to the coronavirus, has laid off 650 of 850 employees. (AP Photo/Mark Lennihan)
An employee of Junior’s Restaurant arrives with her son to pick up a paycheck, Thursday, March 19, 2020 in the Brooklyn borough of New York. The restaurant company, which has closed its four locations due to the coronavirus, has laid off 650 of 850 employees. (AP Photo/Mark Lennihan)

“Restaurant workers continue to make up the largest share of America’s jobless,” the IRC said in a statement. “Congress needs to pass a relief package specifically designed to protect our industry. Some independent restaurants are able to reopen, but the odds of staying open have grown nearly insurmountable. Restaurant owners face massive losses in revenue due to social distancing guidelines and increasing costs of supplies, and risk being forced to close again at any time.”

This article was originally posted on finance.yahoo.com/news/.
Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

To cook a perfect steak, use math

Hala Nelson and her colleagues wanted to cook the perfect steak. So they decided to use math. The researchers created a mathematical simulation of a lean...

$500K Game of Rock, Paper, Scissors Goes to Court

Who loses $517,000 in a game of rock, paper, scissors? Canadian man Edmund Mark Hooper does, but he must be happy today: The Quebec...

What is Oprah Winfrey Like?

Oprah Winfrey has been one of the most well-known and recognized talk show hosts on television for a long time. As a young woman...

U.S. stocks slide as coronavirus toll slams earnings, economic data

U.S. stocks fell Wednesday, erasing much of the previous session’s gains, amid an onslaught of disappointing corporate earnings reports and weaker-than-expected economic data resulting...

Mesothelioma Causes

If you find yourself in need of an answer to the question "What are mesothelioma causes?" you may be able to get some good...
Home of Science
Follow me