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Largest Rise In Unemployed Since April 2020 Drives Unemp Rate Higher

US DATA

The surprise jump in May's unemployment rate (to an unrounded 3.655% from 3.395% in Apr) is due to a very large rise in unemployed people rather than a higher participation rate (all from the household survey):

  • Unemployed +7.8% M/M to 6.097mln (biggest % increase since Apr 2020)
  • Change in unemp rate of +0.26pp all of which was due to that rise in unemployed; participation rate was steady at 62.6%

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