WASHINGTON -- America’s labor market defied forecasts for a Depression-style surge in unemployment by rebounding in May, signaling the economy is picking up faster than anticipated from the coronavirus-inflicted recession.
A key gauge of payrolls rose by 2.5 million, 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 percent from 14.7%.
U.S. stocks jumped after the report, adding to weeks of gains in equities since mid-March.
While the overall picture improved, one key number in the report deteriorated. Unemployment rates declined among white and Hispanic Americans, but the level ticked up among African Americans to 16.8 percent, matching the highest since 1984. That comes amid nationwide protests over police mistreatment of African-Americans, which have drawn renewed attention to black people’s econo…