The Bureau of Labor Statistics (BLS) reports that U.S. employers expanded payrolls by 172,000 jobs in May. That figure is well above economists’ projections of between 80,000 and 122,000 jobs. It marks the first time since early 2024 that the economy has seen 3 consecutive months of employment gains exceeding 100,000.
The May jobs report also notes that the U.S. economy saw 93,000 more jobs added than previously reported for March and April combined. March’s revised figure of 214,000 is the first monthly gain above 200,000 since early 2024, according to BLS data.
Leisure and hospitality employers added 70,000 jobs in May
The leisure and hospitality industry led the way in payroll expansion last month, with employers adding 70,000 jobs. The BLS also reports significant job growth in government (+52,000 jobs) and the private education and health services sector (+40,000 jobs).
These industries also saw notable gains, according to the May jobs report:
Construction: 17,000 jobs addedManufacturing: 7,000 jobs addedProfessional and business services: 6,000 jobs added, including 1,400 in temporary help servicesUtilities: 1,400 jobs added
Industries that experienced payroll contraction last month include financial activities (-22,000 jobs), wholesale trade (-3,700 jobs) and information (-2,000 jobs).
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Hiring continues where business needs are most urgent
Recent labor market data suggests employers are still hiring, but with a clear focus on roles that address immediate business needs, persistent skills gaps and high-priority work.
The latest Job Openings and Labor Turnover Summary from the BLS shows job openings increased to 7.6 million in April, up 520,000 from a year earlier. Openings rose notably in professional and business services, while hires decreased to 5.1 million. The quits rate dipped slightly to 1.9%, suggesting workers may be more cautious about changing jobs.
For employers, the challenge remains finding the skilled talent needed to support critical work without overextending current teams. Robert Half research shows just 6% of hiring managers say they have the talent needed to complete high-priority projects this year. Meanwhile, 59% of professionals report feeling burned out and 33% say their burnout has worsened over the past year, often because of heavier workloads tied to understaffed teams.
As organizations revisit delayed projects and hiring timelines accelerate for essential roles in the months ahead, employers will need to balance speed with strong candidate evaluation, using contract and interim talent where needed to keep work on track and reduce the risk of costly hiring mistakes.
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