U.S. employers added 139,000 jobs in May 2025, a modest increase that signals continued, but slowing, growth in the nation’s labor market. The unemployment rate remained unchanged at 4.2 percent, according to the latest report from the U.S. Bureau of Labor Statistics (BLS).

The health care sector led job creation in May, adding 62,000 positions, outpacing its average monthly gain of 44,000 over the past year. Hospitals, ambulatory health care services, and skilled nursing facilities all saw notable increases. Leisure and hospitality also continued its upward trend, with 48,000 new jobs, primarily in food services and drinking places. Social assistance employment grew by 16,000.

While private sector hiring showed resilience, the federal government shed 22,000 jobs in May, bringing total federal job losses to 59,000 since January. 

The labor force participation rate fell by 0.2 percentage point to 62.4 percent, and the employment-population ratio slipped to 59.7 percent. These declines suggest that fewer Americans are either working or actively seeking work compared to previous months.

The number of unemployed people remained relatively unchanged at 7.2 million. The unemployment rate for major demographic groups—including adult men (3.9 percent), adult women (3.9 percent), Whites (3.8 percent), Blacks (6.0 percent), Asians (3.6 percent), and Hispanics (5.1 percent) showed little or no change.

Notably, the number of people unemployed for less than five weeks rose by 264,000 to 2.5 million, while the number of long-term unemployed (jobless for 27 weeks or more) dropped by 218,000 to 1.5 million. Long-term unemployed now account for just over 20 percent of all jobless individuals.

The BLS revised down its estimates for job gains in March and April by a combined 95,000 positions. March’s total was adjusted from 185,000 to 120,000, and April’s from 177,000 to 147,000, reflecting updated data from business and government payrolls.

Alternative indicators show that broader labor underutilization remains elevated. The U-6 rate, which includes discouraged workers and those working part-time for economic reasons, stood at 7.8 percent in May.

The next employment situation report is scheduled for release on July 3, 2025.