US Nonfarm Payroll Increases by 139,000 in May; Unemployment Steady at 4.2%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 139,000 in May, closely aligned with the average monthly gain of 149,000 over the prior 12 months.

Growth was led by the following sectors:

• Health care added 62,000 jobs in May, exceeding its 12-month average of 44,000 per month.
• Leisure and hospitality employment continued to trend upward, adding 48,000 jobs—more than double its 12-month average monthly gain of 20,000.
• Social assistance added 16,000 positions, although this was below its 12-month average of 20,000.

These gains were partially offset by losses in federal government employment, which declined by 22,000 in May and is down 59,000 since January. The BLS notes that workers on paid leave or receiving severance are still counted as employed in the establishment survey.

Employment in most other major industries (including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; and other services) showed little change in May.

The unemployment rate held steady at 4.2% and has remained in a narrow range of 4.0–4.2% since May 2024. The number of unemployed people was little changed at 7.2 million.

Monthly Revisions

Revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

The change in total nonfarm payroll employment for March was revised down by 65,000, from 185,000 to 120,000, and the change for April was revised down by 30,000, from 177,000 to 147,000. With these revisions, employment in March and April combined is 95,000 lower than previously reported.