The Bureau of Labor Statistics (BLS) reported that U.S. employers added 172,000 jobs in May, topping expectations with gains reported in leisure and hospitality, local government, and health care. The unemployment rate stayed the same at 4.3%.

The labor force participation rate held at 61.8% in May, while the employment-population ratio edged up slightly to 59.2%.

In May, employment trended up in BLS sectors including health care and social assistance (+47,200), local government (+55,000), leisure and hospitality (+70,000), and construction (+17,000).

Employment trended down in sectors including financial activities (-22,000), information (-13,000), and retail trade (-1,000).

The professional and business services sector as a whole saw employment rise by 6,000 in May. Here’s how that broke down by subsector:

• Legal services (+1,200)
• Accounting, tax preparation, bookkeeping, and payroll services (-5,400)
• Computer systems design and related services (+1,700)
• Management, scientific, and technical consulting services (-3,500)
• Administrative and support services (+200)

Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents over the month. On a year-over-year basis, average hourly earnings have increased by 3.4%.

In addition to May’s numbers, the BLS revised reported employment from March and April in this month’s report. The change in total nonfarm payroll employment for March was revised down up by 29,000 to +214,000, and the change for April was revised up by 64,000 to +179,000.

Job Report Tops Economist Expectations

May’s gains topped economist expectations and marked three straight months of payroll gains. According to CBS News, economists polled by FactSet predicted that the economy would gain just 105,000 jobs in May.

Indeed Director of Economic Research Laura Ullrich said on the bright side, job growth was “more broad-based in May than we have seen in recent months” with multiple sectors adding at least 40,000 jobs. On the other hand, Ullrich pointed to low hire and quit rates in the latest JOLTS report to say it is “still a low-hire, low-fire market, and the calm on the surface reflects stillness underneath.”

With employment growth surpassing expectations, competition for talent is accelerating. Organizations that move quickly and stay agile will have the advantage in securing the skilled professionals needed to sustain momentum and drive results.

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