Summary
The Bureau of Labor Statistics (BLS) released the Employment Situation for May. The U.S. added 172,000 non-farm jobs, helped by strength in leisure and hospitality; local government; and the stalwart Healthcare sector. Employment in financial activities declined. Our forecast was for an increase of 125,000 new jobs in May, while the consensus was 85,000. The results raised the three-month average to 188,000 from 48,000 before the report. April’s payrolls were revised higher by 64,000 to 179,000 and March was increased by 29,000 to a gain of 214,000. In addition, the decline in February payrolls rolled out of the calculation. The BLS Diffusion Index indicated 54.4% of 250 private industries are hiring, up from 54.0% in April. Manufacturing rose to 53.5% from 46.5%. The unemployment rate was unchanged at 4.3%, which matched our estimate and the consensus. Average hourly earnings increased $0.12 month to month and are 3.4% higher year over year. The average workweek was unchanged at 34.3 hours. Employment showed little change in construction; manufacturing; wholesale trade; retail trade; information; professional and business services; and other services. Employment declined by 22,000 in financial activities and is down by 107,000 since a recent peak in May 2025. There were notable job losses (-11,000) in insurance carriers and related activities in May. The manufacturing sector added 7,000 jobs. Stock futures were mixed af