Highlights:
- Total nonfarm payroll employment rose by 139,000 in May.
- Unemployment rate remained at 4.2%, with 7.2 million unemployed people.
- Significant job gains in health care (+62,000) and leisure and hospitality (+48,000).
- Federal government jobs declined by 22,000 in May, totaling a 59,000 loss since January.
- Average hourly earnings rose 0.4% to $36.24.
Total nonfarm payroll employment in the U.S. increased by 139,000 in May 2025, according to the latest data released by the Bureau of Labor Statistics (BLS). The unemployment rate remained steady at 4.2% for the third consecutive month, reflecting ongoing stability in the labor market despite softness in government employment.
The household survey showed little movement across major demographic groups. Adult men and women posted unemployment rates of 3.9%, while teenage unemployment remained high at 13.4%. Racial disparities also persisted: the unemployment rate was 3.8% for Whites, 6.0% for Blacks, 3.6% for Asians, and 5.1% for Hispanics.
Among the unemployed, the number of people jobless for less than five weeks surged by 264,000 to 2.5 million. In contrast, long-term unemployment—those out of work for more than 27 weeks—declined by 218,000 to 1.5 million, now accounting for about 20.4% of all unemployed persons.
Labor Force Participation and Underemployment
The labor force participation rate dipped slightly to 62.4%, while the employment-population ratio decreased by 0.3 percentage points to 59.7%. These declines suggest modest pullbacks in overall workforce engagement.
Part-time employment for economic reasons remained stable at 4.6 million, reflecting the number of people seeking full-time work but stuck in part-time roles. Meanwhile, 6.0 million people remained outside the labor force but expressed a desire for employment.
Where Jobs Were Gained and Lost
The establishment survey found job gains concentrated in service-related sectors:
- Health care: +62,000 jobs — with hospitals (+30,000), ambulatory services (+29,000), and nursing care (+6,000) driving growth.
- Leisure and hospitality: +48,000 jobs — mostly in food services and drinking places (+30,000).
- Social assistance: +16,000 jobs — entirely in individual and family services.
Conversely, federal government employment declined by 22,000 jobs and has shed a total of 59,000 since January 2025.
Industries such as construction, manufacturing, retail, and transportation showed little to no job growth during the month.
Wages and Hours Worked
Average hourly earnings for private nonfarm payroll employees increased by $0.15 (0.4%) to $36.24. For nonsupervisory employees, average hourly pay rose to $31.18.
The average workweek remained unchanged at 34.3 hours. In manufacturing, the average workweek stayed at 40.1 hours, with 2.9 hours of overtime.
Revisions and Historical Context
The BLS also revised down its previous employment estimates for March and April by a combined 95,000 jobs. March’s gain was lowered from +185,000 to +120,000, while April’s was adjusted from +177,000 to +147,000.
May’s gain of 139,000 is consistent with the 12-month average monthly increase of 149,000 jobs, suggesting that the labor market is growing steadily but not overheating.
(Data source: U.S. Bureau of Labor Statistics – The Employment Situation, May 2025)
- Total nonfarm payroll employment rose by 139,000 in May.
- Unemployment rate remained at 4.2%, with 7.2 million unemployed people.
- Significant job gains in health care (+62,000) and leisure and hospitality (+48,000).
- Federal government jobs declined by 22,000 in May, totaling a 59,000 loss since January.
- Average hourly earnings rose 0.4% to $36.24.
Total nonfarm payroll employment in the U.S. increased by 139,000 in May 2025, according to the latest data released by the Bureau of Labor Statistics (BLS). The unemployment rate remained steady at 4.2% for the third consecutive month, reflecting ongoing stability in the labor market despite softness in government employment.
The household survey showed little movement across major demographic groups. Adult men and women posted unemployment rates of 3.9%, while teenage unemployment remained high at 13.4%. Racial disparities also persisted: the unemployment rate was 3.8% for Whites, 6.0% for Blacks, 3.6% for Asians, and 5.1% for Hispanics.
Among the unemployed, the number of people jobless for less than five weeks surged by 264,000 to 2.5 million. In contrast, long-term unemployment—those out of work for more than 27 weeks—declined by 218,000 to 1.5 million, now accounting for about 20.4% of all unemployed persons.
Labor Force Participation and Underemployment
The labor force participation rate dipped slightly to 62.4%, while the employment-population ratio decreased by 0.3 percentage points to 59.7%. These declines suggest modest pullbacks in overall workforce engagement.
Part-time employment for economic reasons remained stable at 4.6 million, reflecting the number of people seeking full-time work but stuck in part-time roles. Meanwhile, 6.0 million people remained outside the labor force but expressed a desire for employment.
Where Jobs Were Gained and Lost
The establishment survey found job gains concentrated in service-related sectors:
- Health care: +62,000 jobs — with hospitals (+30,000), ambulatory services (+29,000), and nursing care (+6,000) driving growth.
- Leisure and hospitality: +48,000 jobs — mostly in food services and drinking places (+30,000).
- Social assistance: +16,000 jobs — entirely in individual and family services.
Conversely, federal government employment declined by 22,000 jobs and has shed a total of 59,000 since January 2025.
Industries such as construction, manufacturing, retail, and transportation showed little to no job growth during the month.
Wages and Hours Worked
Average hourly earnings for private nonfarm payroll employees increased by $0.15 (0.4%) to $36.24. For nonsupervisory employees, average hourly pay rose to $31.18.
The average workweek remained unchanged at 34.3 hours. In manufacturing, the average workweek stayed at 40.1 hours, with 2.9 hours of overtime.
Revisions and Historical Context
The BLS also revised down its previous employment estimates for March and April by a combined 95,000 jobs. March’s gain was lowered from +185,000 to +120,000, while April’s was adjusted from +177,000 to +147,000.
May’s gain of 139,000 is consistent with the 12-month average monthly increase of 149,000 jobs, suggesting that the labor market is growing steadily but not overheating.
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