US Nonfarm Payroll Increases by 339,000 in May; Unemployment Rises to 3.7%

The US Bureau of Labor Statistics (BLS) reported Friday (6-2-23) that total nonfarm payroll employment increased by 339,000 in May. This is in line with the average monthly gain of 341,000 over the past 12 months.

The BLS is reporting that job growth was once again widespread in May, with notable growth occurring in the following:

• Professional and business service increased by 64,000, led by gains in professional, scientific, and technical services.
• Government employment rose by 56,000, compared with the average monthly gain of 42,000 over the previous 12 months. Employment in government remains below its pre-pandemic February 2020 level by 209,000, or 0.9%.
• Health care added 52,000 new jobs, similar to the average gain of 50,000 over the previous 12 months.
• Leisure and hospitality added 48,000 new jobs, with food service and drinking places posting the largest gains. Employment in this industry remains below February 2020 by 349,000, or 2.1%.
• Construction added 25,000 new jobs. Over the past 12 months construction has added an average of 17,000 jobs per month.
• Transportation and warehousing increased by 24,000 positions, with transit and ground passenger transportation adding 12,000, which helped to offset a decline posted in April.
• Social assistance added 22,000 jobs, in line with the monthly average gain of 23,000 over the prior 12 months.

The BLS reports that employment was little changed in other major industries in May, including mining, quarrying, and oil and gas extraction; manufacturing; retail trade; information; financial activities; and other services.

The unemployment rate increased 0.3%, from 3.4% in April to 3.7% in May. The number of unemployed persons increased by 440,000 to 6.1 million. The report notes that the unemployment rate has ranged from 3.4% to 3.7% since March 2022.

The BLS says that monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. As a result, the change in total nonfarm payroll employment for March was revised up by 52,000, from 165,000 to 217,000, and the change for April was revised up by 41,000, from 253,000 to 294,000. With these revisions, employment in March and April combined is 93,000 higher than previously reported.