US job growth slows as nonfarm payroll employment rises by 139,000 in May
The unemployment rate remains unchanged at 4.2 percent, with significant gains in health care and hospitality sectors
The U.S. Bureau of Labor Statistics announced that nonfarm employment growth decelerated in May 2025, with a modest increase of 139,000 jobs. The unemployment rate held steady at 4.2 percent, indicating a relatively stable labor market. This report highlights ongoing trends in several key sectors of the economy.
In May 2025, the health care sector saw notable growth, adding 62,000 jobs, outpacing the average monthly gain from the previous year. This surge was primarily driven by job increases in hospitals, ambulatory health care services, and skilled nursing care facilities.
The leisure and hospitality sector continued to show positive trends, with 48,000 jobs added primarily in food services and drinking places. This sector has consistently outperformed, witnessing an average monthly job gain over the past year.
Conversely, federal government employment continued its declining trend, with a reduction of 22,000 jobs in May. This contributes to a significant overall decrease in federal jobs since January 2025.
Additional economic indicators reveal a slight decline in the employment-population ratio to 59.7 percent and a decrease in the labor force participation rate to 62.4 percent. Notably, the number of long-term unemployed saw a decrease, with the long-term unemployed representing 20.4 percent of total unemployed individuals.
Despite the slowing pace of job growth, average hourly earnings for all employees on private nonfarm payrolls increased by 15 cents, reaching $36.24. This marks a 3.9 percent increase over the past year, reflecting continued wage pressures in the labor market.
Future labor market releases, such as the upcoming June report, will shed further light on employment trends and the overall health of the U.S. economy amidst gradual recovery phases.
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