"The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession," the NBER said.
Nonfarm payrolls in May were expected to decrease by 8.333 million while the unemployment rate was seen rising to 19.5%, according to economists surveyed by Dow Jones.
U.S. productivity fell at a 0.9% rate in the first three months of this year, a smaller decline than first estimated, while labor costs rose at a slightly faster pace.
Finding good news in the loss of another 3 million jobs isn't easy, but the steep drop in private payrolls for May could be a sign that the worst over.
The reported total was well below the 8.75 million estimate from economists surveyed by Dow Jones. The reason for the wide disparity was not immediately clear.
The GDPNow outlook is now showing a 52.8% tumble, following data that manufacturing remains firmly in decline and will weigh on investment and consumption.
Visa's total U.S. payments volume fell at a much slower pace in May from the previous month, indicating that consumer spending was picking up as the government starts to ease coronavirus-induced lockdowns.
U.S. manufacturing activity eased off an 11-year low in May, though the recovery from the Covid-19 crisis could take years because of high unemployment.
It's not as if the coronavirus pandemic has gone away, but after a sharp pullback, homebuyers are now piling back into the housing market much faster than expected.
The unemployment rate is at its highest since the Great Depression. The current situation differs from that of the early 20th century in a few ways that may prevent the U.S. from entering another depression.
In perhaps one of the brightest economic readings since the start of the coronavirus pandemic, sales of newly built homes rose nearly 1% in April compared with March, according to the U.S. Census. While that may not seem like a lot, they were expected to fall 22%.
States across the country began reopening parts of their economies as early as April 24. Guidelines for reopening differ widely but a key difference lies in which sector can open first and the speed of the process. However, experts warn that a preemptive reopening can do more harm than good by potentially creating a second wave of infections, which would lead to more closures and increased economic hardship.