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

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.

America’s labor market unexpectedly rebounded in May. Nonfarm payrolls rose by 2.5 million and the jobless rate fell to 13.3% from 14.7%.

Source: Bloomberg)

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%.

U.S. stocks jumped after the report with the S&P 500 up 2.9%, adding to weeks of gains in equities since mid-March. The ...