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U.S. Hiring Rebounds, Defying Forecasts for Surge in Joblessness

  • Payrolls rise 2.5 million as pandemic impact starts to ease
  • Unemployment rate falls to 13.3%; Canadian jobs also rise
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U.S. Unexpectedly Adds 2.5 Million Jobs in May
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America’s labor market defied forecasts for a Depression-style surge in unemployment, signaling the economy is picking up faster than anticipated from the coronavirus-inflicted recession amid reopenings and government stimulus.

A broad gauge of payrolls rose by 2.5 million in May, trouncing forecasts for a sharp decline following a 20.7 million tumble the prior month that was the largest in records back to 1939, according to Labor Department data Friday. The jobless rate fell to 13.3% from 14.7%.