Hiring momentum continued in May as U.S. employers added 139,000 jobs, surpassing economists’ expectations of 125,000, according to the Bureau of Labor Statistics (BLS). The national unemployment rate held steady at 4.2% for the third consecutive month, while the rate for college-degreed professionals ticked up slightly to 2.6%.Employers in private education and health services led payroll expansion last month, adding 87,000 positions. Several other sectors saw strong gains, including leisure and hospitality (+48,000) and financial activities (+13,000). However, the BLS also revised its March and April payroll figures downward by a combined total of 95,000 jobs.Meanwhile, the latest Job Openings and Labor Turnover Survey (JOLTS) from the BLS shows job openings in the U.S. remained above historical averages in April, rising to 7.4 million. The hiring rate also inched up to 3.5%, while the quits rate slipped to 2.0%, signaling a more cautious outlook among workers.Here’s a closer look at other trends we are tracking in the U.S. labor market.
Employers taking a strategic approach with staffing levels
Many businessesare aligning hiring decisions more closely with operational needs, and deploying skilled talent where it is needed most, whether to accelerate digital transformation, enhance the customer experience or meet evolving compliance demands.While job losses have occurred in certain sectors since the start of the year, broad-based layoffs remain relatively limited. In April, total separations edged up to 5.3 million, with layoffs and discharges rising modestly to 1.8 million, according to the latest JOLTS data from the BLS.Many employers are choosing to ride out economic uncertainty by focusing on talent optimization instead of workforce reduction. They are hesitant to part with employees who could be difficult to replace in a competitive hiring market. At the same time, they are mindful of the risks of being under-resourced, especially if business demands shift and they lack the agility to respond to them effectively.Learn about the benefits of maintaining a flexible staffing model.
In-demand skills still commanding salary premiums
Wage growth has moderated in recent months due to reduced movement in the labor market and tighter budgets for staffing. However, select roles and specialties still garner salary premiums. Many businesses remain focused on hiring for mission-critical positions and are willing to negotiate compelling offers to secure top talent.Employers that closely track compensation benchmarks will be well positioned to avoid losing strong candidates to competitors prepared to move fast and flex their offerings. Transparency around career growth, company culture, the ability to work remotely, and perks and benefits can also enhance hiring success, particularly when trying to woo in-demand professionals weighing priorities beyond pay.Stay current on compensation trends with Robert Half’s latest Salary Guide.
Employer tips: Watch for burnout and step up personalized development
Many professionals are stretched to capacity, especially in organizations running with leaner teams while taking a wait-and-see approach to hiring. In this environment, the risk of losing valued talent to burnout is high: In fact, in a Robert Half survey, 36% of professionals said they already feel burned out.Employee burnout often stems from chronic workload imbalances, unclear priorities or the lack of managerial support. Midyear performance discussions offer a valuable opportunity for managers to check for the signs of burnout while reaffirming expectations with staff.They can also use these one-to-one meetings to confirm they are in tune with employees’ preferences, including for professional development. Robert Half’s research helps to highlight why personalizing career paths is important for keeping employees engaged, motivated and satisfied at work:46% of professionals say they’re interested in growing into leadership roles31% prefer to advance without managing people22% aren’t looking for a promotion at allManagers should encourage employees to come to their midyear performance reviews prepared for career conversations that cover their professional growth goals and interests, whether that includes upskilling, exploring cross-functional projects or taking on stretch assignments.
Tips for job seekers: Stay active and be ready to seize short-term opportunities
While many employers are cautious about growing their workforce until they’re more confident about business conditions, strategic talent recruitment continues, particularly for critical and high-impact roles. For job seekers, this moment calls for openness to new possibilities, including contract and project-based positions that can serve as gateways to long-term opportunities.Interim roles offer several advantages beyond earning income. During these engagements, professionals can build valuable connections, sharpen both technical and soft skills, and gain exposure to different industries and work environments. In many cases, contract assignments can become steppingstones to permanent employment or open the door to a new career avenue.Summer can be a promising time for candidates to explore remote or on-site contract jobs. Many companies use the summer months to address staffing gaps, cover employee absences or test new talent ahead of fall workforce planning. Professionals who are adaptable and prepared to contribute quickly can stand out—and may even discover they prefer working full time as a contract professional.
Rising business optimism could shift hiring momentum
The U.S. labor market remains active, though movement is increasingly measured. That tempo reflects a broader atmosphere of guarded but steadily rising optimism among business leaders. In June, U.S. CEOS responding to Chief Executive’s latest CEO Confidence Index survey rated their confidence in current U.S. business conditions at 5.3 out of 10—up from 5.0 May. And more than half (51%) of CEOs surveyed said they expect to see business conditions improve in the months ahead.The message for employers? Focus now on strengthening talent pipelines, so the business is prepared to move swiftly to hire skilled professionals to meet new demands. And for professionals planning to launch a job search soon, now is the time to develop a strategy for uncovering and competing effectively for the best available opportunities when the pace of hiring accelerates.Find out how recruiters can help employers hire talent, and candidates find jobs, in any labor market.
Stay informed about the latest labor market trends—with Robert Half
View Labor Market OverviewWant more data and insights on how the U.S. hiring environment is evolving in 2025? Visit Robert Half’s Labor Market Overview page to get a snapshot view of current hiring trends and access our expanded coverage on industries hiring, remote work statistics and trends, and more.
