“May’s U.S. Bureau of Labor Statistics Employment Situation Summary (BLS) report shows the labor market isn’t backing down. Job openings climbed 139,000 beating analysts’ expectations and similar to the average monthly gain of 149,000 over the prior 12 months. Even with recent layoff headlines, demand for talent is holding strong.
The unemployment rate remained steady at 4.2 percent remaining in a narrow range of 4.0 percent to 4.2 percent over the past year. The BLS noted the total number of unemployed people remained little changed at 7.2 million,” noted David Gerstner, vice president operations of HireQuest.
“Our franchise-owned recruiting and staffing solution businesses of more than 450 offices globally follow this monthly BLS data to not only better understand dynamics influencing their clients’ current business sectors but to also identify industries with solid underlying demand like healthcare, energy, cybersecurity, AI and infrastructure supporting artificial intelligence demand. This month’s data also reflected robust growth in the hospitality sector consistent with what we are seeing on the ground in our HireQuest Direct and Snelling offices, especially in food service and event staffing. Our U.S. offices are staying busy as demand in this sector keeps trending up. Also, reflecting new immigration policies, we have seen an uptick in client need for E-Verified, compliant talent via HireQuest Direct, Snelling and Trade Corp and have increased our delivery capabilities.”
Prior to this morning’s BLS report Julien Lefarge, chief market strategist at Barclays Private Bank provided a view that steady job growth data will indicate continued competing concerns of a gradually slowing labor market versus a risk of rising inflation, “Expectations have been reset lower and a reading of around 100,000 (vs. the 125,000 expected by the consensus) could fall in the ‘not-as-bad-as-feared’ camp. Anything below the 100,000 mark could reignite recession fears, while a stronger-than-expected print could perversely be negative for risk assets as it would likely put upward pressure on [Treasury] yields.”
Key industries reported the following trends in May 2025:
Healthcare once again led employment growth adding 62,000 jobs in May, higher than the average monthly gain of 44,000 over the prior 12 months.
Employment gains in leisure and hospitality accounted for over one-third of this month’s hiring growth adding 48,000 jobs. Over the prior 12 months, leisure and hospitality had added an average of 20,000 jobs per month.
Reflecting efforts to reduce federal government employment costs BLS reported a decline of 22,000 jobs in May and a total of 59,000 since January. Notably employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.
Reflecting overall steady talent demand, employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; and other services.
“Our franchise owners are highly skilled and client focused talent professionals. The agility of the HireQuest business model encourages owners to pivot efficiently and lean into high-demand sectors as they source emerging candidate needs. Even if the broader economy faces pressure, our unique structure positions 450 astute owners to focus on delivering innovative talent solutions in virtually every industry segment,” noted Gerstner.
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