Dow soars 1,000 points after US economy unexpectedly adds 2.5million jobs in May - with dentist offices, construction workers and food services among the industries responsible for the huge employment boost

The Dow has soared 1,000 points after the US economy unexpectedly added 2.5 million jobs last month - with dentist offices, constructions workers and food services among the industries responsible for the boost in employment.

The jobless rate dropped to 13.3 percent in May from 14.7 percent in April, the Labor Department's monthly employment report showed on Friday. That figure is still on par with with what the US witnessed during the Great Depression of the 1930s.

Nonfarm payrolls rose by 2.5 million jobs in May after a record plunge of 20.6 million in April, according to the report.

After weeks of dire predictions by economists that unemployment in May could hit 20 percent or more, the news that the economy added millions of jobs last month was seen as evidence that the collapse caused by COVID-19 may have bottomed out and a recovery is well underway as states loosen their lockdowns.

On Wall Street, the Dow clocked up a staggering gain of more than 1,000 points in midday trading after the report was released.  

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Hotels and restaurants added 1.2 million jobs in May, after shedding 7.5 million. Retailers gained 368,000, after losing nearly 2.3 million in the previous month. Construction companies added 464,000 after cutting 995,000. The health industry added 312,000 jobs with 245,000 of them being in dentistry alone 

Health care employment added 312,000 jobs with 245,000 of them being in dentist offices alone

New unemployment claims below two million for first time during COVID

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The latest figures are a surprisingly positive reading in the midst of a recession that has paralyzed the economy in the wake of the coronavirus pandemic. The May job gain suggests that businesses have quickly been recalling workers as states have reopened their economies following weeks long lockdowns.

The industries to see the sharpest increases in employment in May were in leisure and hospitality, construction, education and heath services and retail trade.  

Employment in May was boosted by restaurants and bars, which added 1.4 million jobs after losing 6 million jobs in April and March. Payrolls continued to decline in the accommodation industry in May, with another 148,000 jobs lost.  

Employment increased by 424,000 in education and health services in May, after a decrease of 2.6 million in April. 

Health care employment added 312,000 jobs with 245,000 of them being in dentistry alone. Offices of other health practitioners saw gains of 73,000 jobs and employment in physicians' offices increased by 51,000.  

Hiring in the construction industry increased by 464,000 jobs last month, recouping about half of April's decline. There were also gains in retail trade, manufacturing, professional and business services, financial activities and wholesale trade.

Government payrolls dropped by 585,000 in May, with the declines in state and local governments, whose budgets have been crushed in the fight against COVID-19. There were more job losses in the information, mining, transportation and warehousing industries.  

President Donald Trump immediately took credit for the rise in jobs just moments after the report was released, tweeting: 'Really Big Jobs Report. Great going President Trump (kidding but true)!' 

Speaking at the White House later, Trump declared: 'Today is probably, if you think of it, the greatest comeback in American history.' 

'We're going to be stronger than we were when we were riding high.'  

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The Labor Department's closely watched monthly employment report on Friday showed the jobless rate dropped to 13.3 percent last month from 14.7 percent in April. Nonfarm payrolls rose by 2.5 million jobs after a record plunge of 20.6 million in April

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On Wall Street, the Dow clocked up a staggering gain of more than 1,000 points in midday trading after the report was released

President Donald Trump immediately took credit for the rise in jobs, tweeting: 'Really Big Jobs Report. Great going President Trump (kidding but true)!'

'These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain it,' the Labor Department said in a statement. 

The overall job cuts have widened economic disparities that have disproportionately hurt minorities and lower-educated workers. 

Though the unemployment rate for white Americans was 12.4 percent in May, it was 17.6 percent for Hispanics and 16.8 percent for African-Americans. 

The report came on the heels of surveys showing consumer confidence, manufacturing and services industries stabilizing. 

'The surprising thing here is the timing and that it happened as quickly as it did,' said Adam Kamins, senior regional economist at Moody's Analytics. 

Still, the job market is in such a deep hole that it could take years to dig out, economists say. Most are forecasting unemployment in the high single-digits or low double-digits by the end of this year.   

'The country has turned the corner from the pandemic and the recession it created for now, but all the workers who lost their paychecks will find it difficult to regain their place in society as many of these jobs are gone forever,' said Chris Rupkey, chief economist at MUFG in New York.

'It took years for the economy to grow enough to find jobs for those unemployed in the last recession, and it will take years again this time to do the same.' 

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The Labor Department's closely watched monthly employment report showed the jobless rate dropped to 13.3 percent last month from 14.7 percent in April. That figure is still on par with what the US witnessed during the Great Depression of the 1930s

Nonfarm payrolls rose by 2.5 million jobs after a record plunge of 20.6 million in April. The number of unemployed Americans is now at 21 million, according to the monthly report

Other evidence has also shown that the job market meltdown triggered by the coronavirus has bottomed out. 

The number of people filing new claims for unemployment benefits declined for nine straight weeks, according to weekly job numbers released on Thursday.  

Another 1.87 million new claims for unemployment benefits were filed in the week ending on May 30. 

While new jobless claims have declined since hitting a record 6.87 million in late March, the latest 1.87 million figure is still considerably high by historical standards.

It means that more than 42 million Americans have been thrown out of work in the three months since COVID-19 struck hard in March, forced widespread business closures and sent the economy into a deep recession. 

The total number of people who are now receiving jobless aid rose only slightly to 21.5 million, suggesting that rehiring is offsetting some of the ongoing layoffs.  

With all states in the process of gradually reopening for business, more consumers are starting to return to restaurants, stores and hair salons. That trend has boosted consumer spending from exceedingly low levels and has likely encouraged some companies to hire again.

The latest figures weren't affected by the protests over the killing of George Floyd, which in recent days forced some major retailers and small businesses to close, because it covers claims filed only through May 30.

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The May job gain suggests that businesses have quickly been recalling workers as states have reopened their economies following weeks long lockdowns. Pictured are people lining up outside an unemployment office in Utah in April

WEEKLY UNEMPLOYMENT CLAIMS: Another 1.87 million new claims for unemployment benefits were filed last week, the Labor Department said on Thursday. It marks the first time claims have been below 2 million since March 21

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WEEKLY UNEMPLOYMENT CLAIMS: More than 42 million Americans have been thrown out of work in the three months since COVID-19 struck hard in March, forced widespread business closures and sent the economy into a deep recession