According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment rose by 139,000 in May, while the unemployment rate remained unchanged at 4.2%. Employment saw notable increases in health care, leisure and hospitality, and social assistance, whereas federal government employment continued to decline. These findings are based on two monthly surveys: the household survey, which measures labour force status, including unemployment by demographic characteristics, and the establishment survey, which assesses nonfarm employment, hours, and earnings by industry.

Household Survey Data

In May, the unemployment rate held steady at 4.2%, with 7.2 million people unemployed. The rates for major worker groups, including adult men (3.9%), adult women (3.9%), teenagers (13.4%), Whites (3.8%), Blacks (6.0%), Asians (3.6%), and Hispanics (5.1%), showed little or no change over the month.

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

The labour force participation rate declined by 0.2 percentage point to 62.4%, and the employment-population ratio fell by 0.3 percentage point to 59.7%. The number of people employed part-time for economic reasons remained little changed at 4.6 million. These individuals preferred full-time jobs but were working part-time due to reduced hours or inability to find full-time employment.

The number of people not in the labour force who wanted a job was little changed at 6.0 million. Among them, 1.6 million were marginally attached to the labour force, and 381,000 were discouraged workers who believed no jobs were available for them.

Establishment Survey Data

In May, total nonfarm payroll employment increased by 139,000, slightly below the average monthly gain of 149,000 over the prior 12 months. Notable job gains occurred in health care, leisure and hospitality, and social assistance. Health care added 62,000 jobs, with growth in hospitals (+30,000), ambulatory health care services (+29,000), and skilled nursing care facilities (+6,000).

Employment in leisure and hospitality rose by 48,000, largely driven by gains in food services and drinking places (+30,000). Social assistance employment increased by 16,000, all of which came from individual and family services.

Federal government employment declined by 22,000 in May and has fallen by 59,000 since January. Employment in other major industries—including mining, construction, manufacturing, wholesale and retail trade, transportation and warehousing, information, financial activities, professional and business services, and other services—showed little change over the month.

Average hourly earnings for all employees on private nonfarm payrolls increased by $0.15 (0.4%) to $36.24, marking a 3.9% rise over the past year. For production and nonsupervisory employees, average hourly earnings rose by $0.12 to $31.18.

The average workweek for all employees remained unchanged at 34.3 hours. For production and nonsupervisory employees, the average workweek also held steady at 33.7 hours.

Revisions to previous months’ data showed a net decrease of 95,000 jobs. March employment was revised down by 65,000 to +120,000, and April was revised down by 30,000 to +147,000. These revisions reflect additional reports and updated seasonal adjustments.

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