U.S. labor market adds 139,000 jobs in May as unemployment holds at 4.2%
U.S. labor market adds 139,000 jobs in May as unemployment holds at 4.2%
Healthcare and hospitality lead hiring while job market cools slightly from April’s pace
U.S. labor market adds 139,000 jobs in May as unemployment holds at 4.2%
Healthcare and hospitality lead hiring while job market cools slightly from April’s pace
06.09.2025
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·U.S. labor market adds 139,000 jobs in May as unemployment holds at 4.2%
May jobs
The U.S. economy added 139,000 jobs in May, signaling continued growth, though at a slower pace than the previous month.1 The unemployment rate remained unchanged at 4.2% for the third straight month, holding steady between 4.0% and 4.2% since May 2024, according to the Bureau of Labor Statistics.2
The update follows a stronger April, when the economy added a revised 147,000 jobs and wage growth ticked up, suggesting a labor market holding firm despite mixed signals in the broader economy.3
Read more: April jobs report signals steady labor market
Healthcare jobs continue to increase
The jobs report shows that in May, healthcare once again led hiring, contributing 62,000 new jobs — well above its 12-month average, while the leisure and hospitality sector added 48,000 jobs, primarily in bars, restaurants, and accommodation services.4 Social assistance roles grew by 16,000.5
By contrast, the federal government shed 22,000 jobs in May, bringing the year-to-date total to a loss of 59,000 positions.6 Manufacturing employment declined by 8,000, with the majority of losses in machinery — likely linked to tariff effects.7
Read more: Game plan for managing investment market volatility
Wage growth in May
Average hourly earnings increased by 0.4% in May and are now up 3.9% from a year ago. But the labor force shrank by 625,000 people, pushing the participation rate down to 62.4%, its lowest level since February.8
Read more: The pursuit of workplace happiness
Weekly jobless claims exceed forecast
Further signs of softening emerged this week when the Department of Labor reported that weekly jobless claims for the week ending May 31 rose to 247,000 — exceeding the 235,000 forecasted by analysts.9
Revisions to previous months also paint a slightly weaker picture: March and April job gains were revised downward by a combined 95,000, reducing the yearly average to 124,000 jobs added per month.10
Read more: Homebuyers gain edge in challenging spring market
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1 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” June 2025
2 Ibid
3 CNN, “The US economy added 139,000 jobs in May, slightly more than expected,” June 2025
4 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” June 2025
5 Ibid
6 Ibid
7 Reuters, “US job growth slows as tariff uncertainty leaves businesses in limbo,” June 2025
8 Ibid
9 CBS News, “Unemployment claims rise to highest level in 8 months, signaling slowdown in job market,” June 2025
10 CNN, “The US economy added 139,000 jobs in May, slightly more than expected,” June 2025
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