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Economic Adviser Calls May Jobs Report 'Biggest Positive Data Shock In History'

Economic Adviser Calls May Jobs Report 'Biggest Positive Data Shock In History'
Mohamed El-Erian, Chief Economic Adviser of Allianz (Photo by Rob Kim/Getty Images)

By    |   Sunday, 07 June 2020 01:50 PM

The Bureau of Labor Statistics’ jobs report for May was the "biggest positive data shock" in history, Allianz chief economic adviser Mohamed El-Erian said Sunday.

In an interview on “Fox News Sunday,” El-Erian marveled at the Labor Department report of a lower-than-expected 13.3% unemployment rate.

"I was very surprised,” he said. “This will go down in history as the biggest positive data shock for the markets and the economy."

"It's some combination of an incredibly resilient economy bouncing back, the impact of government measures including the Paycheck Protection Program and finally, maybe some data distortion, so we can't figure it out yet, but it certainly is good news,” he added.

According to El-Erian, categorization issues may have led to the unemployment rate appearing lower than it actually is, however.

"There's a category in there which says 'staying at home for other reasons than unemployment,’” he noted.

“It's supposed to capture jury duty. That category has become really big, and if you adjust for it that’s an additional three percentage points on the unemployment rate."

He also warned an increase in black unemployment to 16.8% highlighted a "problem of inequality of opportunity.”

"The unemployment rate for blacks shot up much faster than it did for whites," he said. "Last Friday's data told us that while whites got a very sharp reduction in the unemployment rate, the rate for blacks went up. ... It's really important to focus on this."

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The Bureau of Labor Statistics' jobs report for May was the "biggest positive data shock" in history, Allianz chief economic adviser Mohamed El-Erian said Sunday....
el, erian, jobs, BLS
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2020-50-07
Sunday, 07 June 2020 01:50 PM
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