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The latest job report for May provides a comprehensive overview of the current state of employment in the United States. 

May’s Key Findings

The U.S. Bureau of Labor Statistics reported that 139,000 jobs were added, with the pace of job growth slower than the average monthly gain of 149,000 jobs over the past year, indicating a potential cooling in overall hiring activity. Despite this, the unemployment rate remains steady at 4.2%, reflecting stability in the broader labor market.

Key sectors include:

• Healthcare
• Leisure & Hospitality
• Social Assistance

Sector-Specific Employment Changes

Employment trends in May 2025 varied significantly by sector. 

Healthcare

Healthcare posted a strong gain of 62,000 jobs, well above its 12-month average of 44,000 jobs. Hospitals (+30,000 jobs) and ambulatory health care services (+29,000 jobs) were the primary contributors, alongside modest growth in skilled nursing care facilities (+6,000 jobs).

Leisure & Hospitality

Leisure and hospitality added 48,000 jobs in May, continuing its recovery. This growth was largely concentrated in food services and drinking places (+30,000 jobs), with smaller gains across other segments. Over the past year, the sector has consistently added jobs at a slower pace, averaging 20,000 jobs per month.

Social Assistance

Social assistance also saw gains, with 16,000 new jobs, driven entirely by growth in individual and family services.

Other Sectors

Conversely, the federal government continued to lose jobs, shedding 22,000 positions in May and bringing the total job loss in the sector to 59,000 jobs since the start of the year. Other major industries, such as manufacturing, construction, retail trade, and financial activities, showed little change in employment over the month.

Unemployment Rates

The overall unemployment rate held steady at 4.2%, a level it has fluctuated around since May 2024. The total number of unemployed individuals changed little to 7.2 million.

Unemployment rates by demographic group:

• Adult men: 3.9%
• Adult women: 3.9%
• Teenagers: 13.4%
• White population: 3.8%
• Black population: 6.0%
• Asian population: 3.6%
• Hispanic population: 5.1%

The number of individuals unemployed for less than 5 weeks increased by 264,000 to 2.5 million. Meanwhile, long-term unemployment (those jobless for 27 weeks or more) declined by 218,000 to 1.5 million, accounting for 20.4% of all unemployed individuals.

Wage Growth & Average Workweek

Wages continued to rise in May 2025, reflecting ongoing income gains for workers. Average hourly earnings for all employees on private nonfarm payrolls increased by 0.4% (15 cents) to $36.24. Over the past year, average hourly earnings have grown by 3.9%, indicating solid wage growth amid a steady labor market.

For private-sector production and nonsupervisory employees, average hourly earnings rose by 12 cents (0.4%) to $31.18.

The average workweek for all employees on private nonfarm payrolls remained unchanged at 34.3 hours for the third consecutive month. Manufacturing employees averaged 40.1 hours per week, with overtime holding steady at 2.9 hours. For production and nonsupervisory employees, the average workweek stayed at 33.7 hours.

Updates To Prior Months� Employment Data

Revisions to prior months� employment data reveal slightly weaker growth than initially reported. March 2025’s total nonfarm payroll employment was revised down by 65,000 jobs, from +185,000 jobs to +120,000 jobs. Similarly, April 2025’s figure was revised down by 30,000 jobs, from +177,000 jobs to +147,000 jobs.

With these adjustments, employment gains for March and April combined are now 95,000 jobs lower than previously estimated. Such revisions stem from additional data received from businesses and government agencies, as well as recalculated seasonal factors.

These updates underscore the importance of interpreting initial estimates with caution, as they are subject to significant adjustments based on subsequent information.

For further reading, check out our other blogs on topics related to the job market.

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