The May jobs report shows a tenth-of-a-percent increase in employment from April to May of this year in Missouri.
But that unemployment rate of 4-point-2 percent is still 5-point-4 percentage points lower than what it was in May 2020, just after Missouri was ordered to stay home during COVID.
Experts say goods-producing industries gained 15-hundred jobs over the month of May, but the tenth-of-a-percent decrease in job performance after April could be explained by a temporary shortage of semiconductor chips, which has slowed some manufacturing in Missouri.
The national unemployment rate for May was 5-point-5 percent.
Missouri non-farm payroll employment increased from April 2021 to May 2021, but the seasonally adjusted unemployment rate increased by a tenth of a percentage point. Employment, seasonally adjusted, increased by 6,000 jobs over the month, with job gains in both goods-producing and service-providing industries. The state’s seasonally adjusted unemployment rate was 4.2 percent in May 2021, up from 4.1 percent in April 2021. With the initial wave of COVID-19-related layoffs now more than a year in the past, the six-figure over-the-year job losses that had characterized the Missouri labor market for the last nine months of 2020 and the first three months of 2021 were replaced with an increase of nearly 200,000 jobs from May 2020 to May 2021. Long-term improvement can be expected but short-term shortages of semiconductor chips may hold down employment in manufacturing in the next few months.
Missouri’s smoothed seasonally adjusted unemployment rate increased by a tenth of a percentage point in May 2021, rising to 4.2 percent from the April 2021 rate of 4.1 percent. The May 2021 rate was 5.4 percentage points lower than the May 2020 rate. The rate had reached a low of 3.1 percent starting in July 2018, before gradually edging up to 3.5 percent by the end of 2019, and then to 3.7 percent in March 2020. The COVID-19 effect hit in April 2020, spiking the rate to 12.5 percent for that month. The rate decreased monthly for the rest of 2020, reaching 4.4 percent in December, and continued gradually downward through the first four months of 2021. The increase of a tenth of a percentage point in May 2021 appears to be related to a temporary shortage in the supply of semiconductor chips, which caused production slowdowns in some manufacturing industries.
Due to benchmark revisions, Missouri’s unemployment rate rose a tenth of a percentage point higher than the national rate in January and February of 2020, but has been below the national rate for every month since February 2020. The national unemployment rate decreased from 6.1 percent in April 2021 to 5.8 percent in May 2021. The estimated number of unemployed Missourians was 128,770 in May 2021, up by 1,824 from April’s 126,946. Missouri’s total civilian labor force increased by 4,440 in May compared to April and there are over 150,000 fewer Missourians unemployed than in May 2020.
The state’s not-seasonally-adjusted unemployment rate had an unusual increase in May 2021, rising by six-tenths of a percentage point to 4.7 percent from the April 2021 not-seasonally-adjusted rate of 4.1 percent. The shortage of semiconductor chips, along with chilly, rainy weather that put a damper on outdoor activities, were factors in the increase. The corresponding not-seasonally-adjusted national rate for May 2021 was 5.5 percent.
A year ago, the state’s seasonally adjusted rate was 9.6 percent, and the not-adjusted rate was 9.7 percent.
Read the full report at https://meric.mo.gov/