Actalent Labor Market and Economy Report: A Look at Trends in May 2026

Eliza Hetrick, Actalent Market Research Analyst

U.S. employment increased by 172,000 jobs in May, exceeding expectations for the third consecutive month.

By industry, job gains were largely concentrated in leisure and hospitality (+70,000), local government (+55,000) and healthcare (+35,200).

Revisions to prior months suggest stronger employment gains than initially reported. March’s employment increase was revised from 185,000 to 214,000, while April’s job gain was revised from 115,000 to 179,000.

While one month of data should not be used to determine long-term trends, May’s jobs report included encouraging signs, with employment increases across all industries Actalent supports. The broader picture, however, continues to point to volatility in the labor market and uneven strength across industries. The industries with the strongest year-over-year job growth are related to health care, aerospace and defense, and utility construction. Notably, employment in the water and sewer system construction industry is up 4.8% year over year.

Average hourly earnings rose 3.4% in May, slowing from the annual gains of 3.7% to 3.9% observed between May 2025 and February 2026.

Labor Market Overview: May 2026

172K
Jobs Gained in May

U.S. employment increased by 172,000 jobs in May, following a gain of 179,000 in April. Despite recent job growth, employment is only up by 0.3% compared to May 2025.

61.8%
Labor Force Participation Rate

The labor force participation rate was unchanged at 61.8% between April and May. Participation among prime-age workers (ages 25-54) increased to 83.9%, remaining near historical highs, while participation among other age groups softened or stayed the same.

4.3%
Unemployment Rate

The unemployment rate was unchanged at 4.3% for the third consecutive month. Unemployment rates close to 4.0% suggest a relatively limited supply of available jobseekers.

1.7M
April Layoffs

Layoffs declined from 1.9 million in March to 1.7 million in April. Quits declined from 3.2 million to 3.0 million. Quits and layoffs data lag one month behind other employment data.

Source: Bureau of Labor Statistics' Employment Situation Summary