Actalent Labor Market and Economy Report: A Look at Trends in May 2025

Executive Summary

Job Growth

The U.S. economy added 139,000 jobs in May. Notable gains occurred in healthcare (+62,200), leisure and hospitality (+48,000), and social assistance (+16,100), while notable declines occurred in the federal government (-22,000).

Other industries Actalent supports experienced the following job growth and loss last month: aerospace and defense (-1,300), architecture and engineering (-1,000), automotive (+400), construction (+4,000), manufacturing (-8,000), scientific research and development (-3,900) and utilities (+2,200).

Unemployment and Labor Force Participation

The unemployment rate was unchanged at 4.2% in May for the third consecutive month. The labor force participation rate declined from 62.6% in April to 62.4% in May.

Unemployment rates specific to the industries Actalent supports were as follows for May: hospitals (1.6%), utilities (1.5%), professional and technical services (3.0%), manufacturing (3.4%) and construction (4.8%).

Among skilled labor categories Actalent sources talent for, unemployment in software-IT-mathematics was 3.4%; architecture and engineering was 1.7%; and sciences (life, physical and social) was 2.5%.

Inflation

The year-over-year inflation rate increased by 2.4% between May 2024 and May 2025, slightly above April’s reading of 2.3%. As mentioned in last month’s report, the Federal Reserve has maintained interest rates at current levels so far this year, citing heightened economic uncertainty despite progress toward the 2.0% inflation target.

Wage Growth

Average hourly earnings increased by 3.9% for the 12 months ending May, relatively unchanged from the last three months. “Real” average hourly earnings (wages adjusted for inflation) increased by 1.4% between May 2024 and May 2025. In other words, average hourly earnings are keeping up with inflation, but consumers may still be feeling the pressure of higher prices.