Wage Growth
Average Hourly earning rose by 0.4% in May, better than expected.
Elevated U-6 Unemployment Rate
The U-6 rate, encompassing underemployment and discouraged workers, remained elevated at 7.8%, approximately 0.9 percentage points higher than the same period last year.
Sector Employment Gains and Losses
Healthcare (+62,000), Leisure & Hospitality (+48,000) led the way in terms of employment gains in May. The Federal Government shed 22,000 jobs.
April JOLTS Report
Job Openings Rate Steady: The BLS reported that job openings rose more than expected in April, though other indicators, such as surveys from employment site Indeed and the National Federation of Independent Business, show weaker levels of openings and hiring intentions.
April Jobs Report
The jobs report indicates a modest slowdown in employment growth, with the economy adding fewer jobs compared to previous months) but still above economists’ expectations). While some may interpret this as a sign of economic weakness, the overall picture remains resilient, with unemployment remaining relatively stable. Notably, Federal government employment has seen some declines; however, these reductions are not necessarily detrimental. Federal job losses tend to remove spending power from the economy, which can slow economic activity, but they do not contribute to sustainable growth in the way private sector employment does.
The private sector continues to demonstrate a more efficient use of resources, driving employment gains and productivity improvements. As private firms adapt to changing economic conditions, they tend to optimize their workforce and innovate more quickly, supporting overall economic health. In contrast, reductions in government jobs, while sometimes necessary for fiscal discipline, do not have the same positive ripple effects on economic activity as private sector job growth. Overall, the report suggests a balanced economy where private sector efficiency remains a key driver of resilience.
Key Metrics & Trends
A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons remained at 7.8%.
Prime age labor force participation rate (ages 25-54) was down .2% 83.4%.
The overall labor force participation held was down by .2% to 62.4%. This is 1.0% below the level of February 2020.
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.
In May, the average workweek for all employees on private nonfarm payrolls was 34.3 hours for the third month in a row. In manufacturing, the average workweek was little changed at 40.1 hours, and overtime was unchanged at 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.7 hours in May.
APD reported that 37,000 jobs were added in April.
Sources
Job Openings and Labor Turnover in April
Summary:
The number of job openings was little changed at 7.4 million in April, the U.S. Bureau of Labor Statistics reported today. Over the month, both hires and total separations were little changed at 5.6 million and 5.3 million, respectively. Within separations, quits (3.2 million) and layoffs and discharges (1.8 million) changed little.
This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class. Job openings include all positions that are open on the last business day of the month. Hires and separations include all changes to the payroll during the entire month.
Job Openings
The number and rate of job openings were little changed at 7.4 million and 4.4 percent, in April. The number of job openings decreased in accommodation and food services (-135,000) and in state and local government, education (-51,000). The number of job openings increased in arts, entertainment, and recreation (+43,000) and in mining and logging (+10,000).
Hires
In April, the number and rate of hires were little changed at 5.6 million and 3.5 percent, respectively. The number of hires was little changed in all industries in April. (See table 2.)
Seperations
Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.
The total number of separations in April was little changed at 5.3 million. The total separations rate remained unchanged at 3.3 percent. Total separations increased in federal government (+9,000).
In April, the number and rate of quits were little changed at 3.2 million and 2.0 percent, respectively. The number of quits was down by 220,000 over the year.
In April, the number and rate of layoffs and discharges were little changed at 1.8 million and 1.1 percent, respectively. Layoffs and discharges increased in health care and social assistance (+52,000) but decreased in state and local government, excluding education (-14,000) and in federal government (-4,000).
The number of other separations was little changed at 308,000 in April.
Establishment Size Class
In April, establishments with 1 to 9 employees and establishments with 5,000 or more employees showed little or no change in job openings, hires, and separations rates.
March 2025 Revisions
The number of job openings for March was revised up by 8,000 to 7.2 million, the number of hires was revised down by 7,000 to 5.4 million, and the number of total separations was revised up by 46,000 to 5.2 million. Within separations, the number of quits was revised up by 12,000 to 3.3 million, and the number of layoffs and discharges was revised up by 32,000 to 1.6 million. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
The Job Openings and Labor Turnover Survey estimates for May 2025 are scheduled to be released on Tuesday, July 1, 2025, at 10:00 a.m. (ET).
Ready to start your funding journey? Partner with Madison Resources today [apply here]
Nick Andriacchi is the Chief Revenue Officer at Madison Resources, bringing over 30 years of experience in the funding and payroll industry. Before joining Madison, Nick held leadership roles at two other funding companies, where he built a reputation as a trusted advisor and strategic thinker. Widely regarded as a true industry expert, Nick is passionate about helping staffing firms grow through smart funding solutions and operational support.
Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.