Employment Update

May 2025

The American employment landscape is constantly changing. Keep up-to-date with the most recent trends with our monthly Employment Landscape Overview. Figures and statistics sourced from the Bureau of Labor Statistics and the American Staffing Association.

  • Acara Icon Workforce

    Unemployment Remained the Same at 4.2%

    The unemployment rate was unchanged at 4.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in health care, leisure and hospitality, and social assistance. Federal government continued to lose jobs.

  • Acara Icon briefcase

    Long-term unemployment decreased

    In May, the number of long-term unemployed (those jobless for 27 weeks or more) increased by​ 218,000 to 1.5 million. The long-term unemployed accounted for 20.4 percent of all unemployed people.​

  • noun worker 7521322 EA0029

    Labor force participation had a minor decrease

    In May, the labor force participation rate decreased by 0.2 percentage point to 62.4 percent.

  • Acara Icon earnings

    Average hourly earnings increased by $0.15

    Average hourly earnings for all employees on private nonfarm payrolls rose by 15 cents, or 0.4 percent, to $36.24 in May. Over the past 12 months, average hourly earnings have increased by 3.9 percent. In May, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $31.18

  • Acara Icon Rejected

    Number of people working part time for economic reasons changed a little from 4.6M​

    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.

  • Icon showing outlines of a home, dollar sign, and a plant

    People not in the labor force who currently want a job was little changed from last month​

    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 4 weeks preceding the survey or were unavailable to take a job.

  • Acara Icon temp

    Temp penetration rate decreased

    Temporary help employment was 1.57% of total nonfarm employment in May.

  • Acara Icon people circles

    Temp help jobs increased

    Temporary help jobs in May increased to 5.1%, seasonally adjusted, from last month.

  • Acara Icon payroll

    Nonfarm payroll employment increased​

    Total nonfarm payroll employment increased by 139,000 in May, similar to the average monthly gain of 149,000 over the prior 12 months.

    In May, employment continued to trend up in:
    -healthcare (62k)
    -leisure & hospitality (48k)
    -social assistance (16k)

    Federal government continued to lose jobs.

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Industry Trends – Tariffs Impact on Manufacturing Talent Acquisition

Acara summarizes the latest industry trends each month to keep you informed as you make decisions about the future of your business.

    • 62.3% of manufacturers report rising raw material costs due to tariffs as major business challenge
    • Material costs expected to rise 5.5% vs. product prices increasing only 3.6%
    • Result: Tighter budgets = reduced hiring capacity
  • 5 Key Approaches:

    Internal Mobility & Cross-Training

    • Upskill existing line workers/technicians for higher-skilled roles
    • Implement apprenticeships and job rotation programs

    High-Impact Role Focus

    • Prioritize mission-critical positions (maintenance techs, industrial engineers)
    • Align staffing with production cycles and demand

    Local Community Engagement

    • Strengthen employer brand highlighting stability and advancement
    • Partner with high schools, trade schools, community colleges

    Enhanced Employee Referrals

    • Offer meaningful incentives ($250 bonuses, preferred parking)
    • Make referral process mobile-friendly for hourly workers

    Cost-Effective Recruiting

    • Utilize local job boards, community groups, union boards
    • Partner with workforce development agencies and attend vocational job fairs

    Transform budget constraints into strategic workforce agility through upskilling, community partnerships, and optimized talent acquisition processes.

View the Canada Monthly Employment Update

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