Recovery from the pandemic’s impact is underway, though at a gradual pace.

When the COVID-19 outbreak hit the US hard in April, the nation experienced job losses on a scale not seen since the Great Depression. Around 20 million jobs vanished, pushing the unemployment rate to an unprecedented 14.7%. In response, states began reopening to revive businesses and bring back some sense of normalcy. The latest unemployment data for May reflects these efforts, showing a slight improvement.

The May employment report indicates a slight decrease in unemployment to 13.3%, coupled with the addition of approximately 2.5 million jobs to the economy. The number of new unemployment claims has also fallen, dropping to 1.9 million last week from the peak of 6.6 million seen in April. Particularly impacted sectors such as leisure and hospitality saw a significant recovery, with 1.2 million new jobs being added.

While these developments are positive, experts caution that the underlying issues are far from resolved. Jason Reed, a finance professor at the University of Notre Dame’s Mendoza College of Business, notes that the country still has a substantial number of unemployed individuals. As states reopen and workers return, businesses severely affected by the pandemic may still resort to temporary or permanent layoffs.

“The longer this situation persists, the greater the likelihood of lasting repercussions,” Reed remarked in an interview with The Guardian. He emphasized the necessity of additional support from the government to prevent challenging decisions by local authorities and businesses.

Despite the gradual improvement in job losses, the pandemic continues to pose a threat, with new cases emerging nationwide. Return to normalcy remains uncertain until an effective and safe vaccine is developed, underscoring the unpredictable nature of the current situation.