Stocks surge on jobs report … Hiring up, unemployment down … Little progress in Brexit talks
NEW YORK (AP) – Stocks are rushing higher in early trading Friday after a stunningly good report on the U.S. job market gave Wall Street’s recent rally another shot of adrenaline. The S&P 500 was up 2.2% within the first 15 minutes of trading after the government said that U.S. employers added 2.5 million workers to their payrolls last month. Economists were expecting them instead to slash another 8 million jobs amid the ongoing fallout from the response to the coronavirus pandemic.
WASHINGTON (AP) – The U.S. unemployment rate fell unexpectedly in May to 13.3% – still on par with what the nation witnessed during the Great Depression – as states loosened their coronavirus lockdowns and businesses began recalling workers. The government says that the economy added 2.5 million jobs last month, driving unemployment down from 14.7% in April. The May job gain confounded economists’ expectations and suggests that thousands of stores, restaurants, gyms and other companies reopened and rehired more quickly than forecast.
OTTAWA, Ontario (AP) – Statistics Canada says the Canadian economy added 289,600 jobs in May, with businesses reopening amid easing public health restrictions. áThe unemployment rate rose to a record high of 13.7%, topping the previous high of 13.1% set in December 1982 in more than four decades of comparable data. The increase in the unemployment rate came as more people started looking for work. Some economists had predicted a loss of 500,000 jobs in May and an unemployment rate of 15.0 %, according to financial markets data firm Refinitiv.
UNDATED (AP) – Companies around the world continue to announce substantial job cuts. Bombardier Aviation is reducing its workforce by about 2,500 employees due to challenges caused by COVID-19. Luxury British carmaker Bentley plans to cut up to 1,000 jobs and has warned of the possibility of more to come as it tries to limit the damage caused by the virus outbreak.
BRUSSELS (AP) – The fourth round of talks for a future trade deal between the European Union and the U.K. ended Friday with little progress. Following four days of video discussions between officials from the two teams of negotiators, the two sides remain at loggerheads on many topics, including regulations for businesses. Their positions on fisheries remain distant, with the U.K. opposed to EU demands for long-term access to British waters. The U.K. is in a so-called transition until the end of this year and if it wants to extend it, it must do so by the end of this month.