Labor Secretary Elaine Chao Explains Rising Unemployment

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The Labor Department reported today that the unemployment rate rose from 5.0 percent to 5.5 percent in May, the largest monthly spike in more than two decades. Secretary of Labor Elaine Chao’s explanation?

“Today’s increase in the unemployment rate reflects the fact that unusually large numbers of students and graduates are entering the labor market.”

Sounds ridiculous? That’s because it kind of is. Here’s some sense from Jared Bernstein at EPI:

“An increase in the youth labor force played a role in May’s unemployment spike. However, even if we take teenagers out of the data, unemployment still rises from 4.5% to 4.8%, a considerable 0.3% increase, and well above the 4.0% adult rate of one year ago.”

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FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

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