The Bureau of Labor Statistics has released its May 2025 Report, so let’s take a look at how employment fared over the last month.
The great news is:
- 139,000 jobs were added in May. While slightly below the monthly average of 149,000 over the past year, this still represents steady job growth.
- Health care led job gains once again, adding 62,000 jobs. Notably, hospitals added 30,000 jobs and ambulatory health care services added 29,000.
- Wages continued to rise. Average hourly earnings increased by 0.4 percent in May and have grown 3.9 percent over the past 12 months. Production and nonsupervisory employees saw the same monthly increase of 0.4 percent compared to April.
The good news is:
- The unemployment rate remained stable at 4.2 percent, continuing the trend of little movement since May 2024.
- Long-term unemployment declined by 218,000, bringing the total to 1.5 million. These workers now represent 20.4 percent of all unemployed individuals.
- Leisure and hospitality employment rose by 48,000 jobs, with 30,000 of those gains coming from food services and drinking places.
- Social assistance continued its upward trend, particularly within individual and family services.
The bad news is:
- Federal government employment declined by 22,000 in May and has fallen by 59,000 since the start of the year.
- Labor force participation decreased to 62.4 percent, and the employment-population ratio dropped to 59.7 percent.
- Revisions to March and April payroll data reduced previously reported job gains by a combined 95,000 jobs, indicating slower growth than originally estimated.
- Short-term unemployment rose, with 264,000 more people reporting jobless spells of fewer than five weeks.
Final Takeaway
May’s report reflects continued hiring momentum in key service industries and encouraging wage growth. However, declining government employment, lower labor force participation, and downward revisions to previous months’ data suggest a labor market facing a mix of progress and pressure. Employers in health care, hospitality, and social services may still find strong candidate demand, but should also be aware of broader economic shifts.