Unemployment Rate Holds Steady at 4.2 Percent

June 6, 2025 – Employment rose by 139,000 in May as the U.S. unemployment was unchanged at 4.2 percent, according to the most recent U.S. Bureau of Labor Statistics report. Employment continued to trend up in healthcare, leisure and hospitality, and social assistance. Federal government continued to lose jobs. The number of unemployed people, at 7.2 million, changed little over the month.

Among the major worker groups, the unemployment rates for adult men (3.9 percent), adult women (3.9 percent), teenagers (13.4 percent), Whites (3.8 percent), Blacks (6.0 percent), Asians (3.6 percent), and Hispanics (5.1 percent) showed little or no change over the month. The number of people jobless less than five weeks increased by 264,000 to 2.5 million in May. The number of long-term unemployed (those jobless for 27 weeks or more) decreased over the month by 218,000 to 1.5 million. Both measures were little changed over the year.

The long-term unemployed accounted for 20.4 percent of all unemployed people in May. In May, the employment-population ratio declined by 0.3 percentage point to 59.7 percent. The labor force participation rate decreased by 0.2 percentage point to 62.4 percent. The number of people employed part time for economic reasons, at 4.6 million, changed little in May. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. In May, the number of people not in the labor force who currently want a job was little changed at 6.0 million. These individuals were not counted as unemployed because they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job.

Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force, at 1.6 million, changed little in May. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the four weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, also changed little over the month at 381,000.

Where Job Growth Occurred

Healthcare added 62,000 jobs in May, higher than the average monthly gain of 44,000 over the prior 12 months. In May, job gains occurred in hospitals (+30,000), ambulatory healthcare services (+29,000), and skilled nursing care facilities (+6,000).

Employment in leisure and hospitality continued to trend up in May (+48,000), largely in food services and drinking places (+30,000). Over the prior 12 months, leisure and hospitality had added an average of 20,000 jobs per month.
In May, social assistance employment continued to trend up (+16,000), reflecting continued growth in individual and family services (+16,000).
Federal government employment continued to decline in May (-22,000) and is down by 59,000 since January. (Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.)

Executive Search 2025: Balancing AI Innovation with a Human Touch

The executive search industry is entering one of its most transformative eras, driven by advancements in artificial intelligence, data analytics, and shifting client needs and expectations. In 2024, firms faced many challenges marked by economic uncertainty, evolving workforce dynamics, and increasing demand for specialized leadership roles. While internal talent mobility and cautious hiring strategies were dominant themes, the need for resilient, adaptable leaders capable of driving innovation has positioned the industry for a pivotal shift in 2025, recruiters tell Hunt Scanlon Media. Firms are stepping up to meet these demands by integrating cutting-edge technology into their workflows while emphasizing the irreplaceable value of human expertise.

Technology, particularly AI, is reshaping how firms identify, evaluate, and connect with top talent. From automating routine tasks to uncovering deeper insights into market trends and candidate fit, these tools enhance efficiency and precision. However, as industry leaders emphasize, the human element remains central to success in this relationship-driven field. By leveraging AI to scale capabilities without sacrificing the personalized touch, executive search firms are not only redefining their processes but also reimagining their role as strategic talent advisors. As 2025 unfolds, the firms that can balance technological innovation with a deep understanding of leadership and culture will set the standard for the future of the industry.

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.

The Private Sector

Private sector employment increased by 37,000 jobs in May and annual pay was up 4.5 percent year-over-year, according to the May ADP^® National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab. The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

“After a strong start to the year, hiring is losing momentum,” said Dr. Nela Richardson, chief economist, ADP. “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.”

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media

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