The US Employment Situation -- May 2025

The US Employment Situation -- May 2025

From bls.gov

Total nonfarm payroll employment increased by 139,000 in May, and the unemployment rate was unchanged at 4.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in health care, leisure and hospitality, and social assistance. Federal government continued to lose jobs. This news release presents statistics from two monthly surveys. The household survey measures labor force status, including unemployment, by demographic characteristics. The establishment survey measures nonfarm employment, hours, and earnings by industry. For more information about the concepts and statistical ... (full story)

Added at 7:34am

U.S. payrolls increased 139,000 in May, more than expected; unemployment at 4.2%

From cnbc.com

Hiring decreased just slightly in May even as consumers and companies braced against tariffs and a potentially slowing economy, the Bureau of Labor Statistics reported Friday. Nonfarm payrolls rose 139,000 for the month, above the muted Dow Jones estimate for 125,000 and the downwardly revised 147,000 that the U.S. economy added in April. The unemployment rate held steady at 4.2%. Worker pay grew more than expected, with average hourly earnings up 0.4% during the month and 3.9% from a year ago, compared to respective forecasts for 0.3% and 3.7%. Nearly half the job growth came from health care, which added 62,000, ... (full story)

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Jun 6, 2025 7:41am — Edited

NFP driven by strong service-sector hiring but offset by continued federal-government losses (–22K) and weakness in professional/business services. It narrowly beats but slightly below the 12-month monthly average (+149K), and a downward revision to prior (177K to 147K). Avg hourly earnings comes in hot.

Notables:

Health care remains the single largest contributor to m/m job growth, with an acceleration in hospitals and ambulatory care.. +78.3K (of which hospitals +30K; ambulatory health care +29K; skilled nursing +6K)

Leisure & hospitality continues its upward trend (food services still leading), though gains have moderated since earlier in the year.

Average hourly earnings rose a modest 0.4 %, consistent with steady but not overheating wage growth; weekly hours remain unchanged.

Manufacturing and retail both contracted in May, signalling persistent headwinds in goods-producing and consumer-facing sectors.

On the household side, labor force participation continues to slip; employment declined by 696K, pushing 813K more people out of the labor force m/m, while unemployment held steady at 4.2%.

The –20.2K decline in Temporary Help Services suggests firms are pulling back on short‐term staffing more aggressively than in April, possibly delaying new project launches or converting potential temporary roles into permanent ones at a slower pace.

ffghost

Jun 6, 2025 7:58am

The US Employment Situation -- May 2025

U.S. payrolls increased 139,000 in May, more than expected; unemployment at 4.2%

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