Economists’ expectations for the monthly jobs report couldn’t be any lower these days.

Despite that, the Bureau of Labor Statistics’ newest employment data for May once again exceeded dour presumptions, even as the labor market continued to slow down from its feverish churn a few years back.

Diving into the data. Employers added 139,000 jobs in May, beating economists’ forecasts of 120,000, but declining from the 147,000 job gain reported in April. At the same time, employment growth stats for March and April were revised down by 95,000. March payroll growth shrank from 185,000 jobs added, as originally estimated, to 120,000 jobs added, and April contracted from 177,000 job gains to 147,000.

The unemployment rate remained unchanged in May at 4.2%, and has hovered between a range of 4% and 4.2% since May 2024. Meanwhile, average hourly earnings rose by 15 cents to $36.24 in May, a 0.4% increase. Despite this broader cooldown, the stronger-than-expected jobs data indicates that the labor market continues to be resilient.

“We’ve heard a lot of talk about our employers dialing back, and I think given the JOLTS report and what we’re seeing [today] that they’re still hiring out there,” Amy Glaser, SVP of business operations at staffing firm Adecco, told HR Brew.

Healthcare again led with job growth, adding 62,000 jobs last month, significantly higher than its 12-month average monthly gain of 44,000, particularly bolstered by growth in hospitals and ambulatory healthcare services, which added 30,000 and 29,000 jobs, respectively.

“Healthcare is booming, which is interesting,” said Isaac Hagen, SVP of emerging verticals and sales excellence at ManpowerGroup. Healthcare also faces challenges including outdated credentialing, worker burnout, and limited labor supply, Hagen noted. “As we can see these big jobs numbers in healthcare, there’s a lot of pressure on talent leaders right now and the industry as a whole. So that's just something that needs attention.”

Leisure and hospitality also reported strong employment growth, adding 48,000 jobs in May, primarily in food services and drinking places. That type of growth was expected as hiring within this industry picks up during the summer months, Glaser said.

The news continued to be bad for federal workers, though, as federal employment declined by 22,000 jobs, and has fallen 59,000 since January, under the second Trump administration’s job cuts and hiring freeze. Additionally, durable goods manufacturing fell by 7,000 in May, reflecting declining demand seen earlier in the April JOLTS data.

Temporary help services also declined, by 20,000 to 2.51 million total employed. Temporary staffing has seen a decline since March 2022, with May marking the lowest employment total for the subsector since August 2020.

This ongoing decline is “unprecedented” for the staffing industry, Glaser said. However, she noted that Adecco is already speaking with clients about their “September surge” hiring plans.

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