Economy gained 2.5 million jobs in May and the unemployment rate went down

Economist and ABC News contributor Austan Goolsbee discusses the economy and unemployment related to the pandemic.
2:28 | 06/06/20

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Transcript for Economy gained 2.5 million jobs in May and the unemployment rate went down
president is glowing about most recent jobs numbers, the economy gaining 2.5 million jobs in may and unemployment rate going down which virtually nobody expected. But still the pandemic has deeply damaged the economy. So let's bring in economist and ABC news contributor Austan Goolsbee. Austan, good morning to you. Let's start with something Rachel Scott mentioned. The unemployment rate went down overall but ticked up slightly for black Americans. Is there a danger that black people will be left out of the recovery? There is some danger of that. I mean it was a strong month but it followed the worst month that we have ever had. And we've got to come back, but if that's going to be focused and heighten the income disparities that existed before covid ever arrived, I think there's going to potentially be an issue there. So this pandemic and the recovery such as it is could end up exacerbating these racial inequities. While the overall numbers in the report do look pretty good, 2.5 million new jobs, you have warned that this might actually be false hope. Why? Well, it was a very strong report and it's great that we got a positive number when everybody was expecting a negative. But the thing to remember is we lost 21 million jobs the month before. So add 2.5, that's a start. More than half the jobs were focused just in the restaurant sector. So we want to be careful to distinguish a real turnaround from just a blip that are just temporary jobs coming back. Hopefully this is the sign of a full turnaround but right now it's focused in one sector and not big enough. Let's hope this is the start of a full turnaround. The federal government has been spending trillions of dollars trying to prop up the economy. At this point, do we know yet whether that was money well We probably don't know yet. Much of that money was not kind of traditional stimulus where you're trying to jump start the economy. It was really just relief and as I say it was sort of like burning money to stay warm while the heat is on. We appreciate your analysis

This transcript has been automatically generated and may not be 100% accurate.

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