Employment by Industry: May Rebounds After Disappointing April

The U.S. labor market gained some ground in May following a disappointing performance the month prior. The U.S. Bureau of Labor Statistics (BLS) reported that employers added 559,000 workers to their payrolls in May, a vast improvement from the measly 266,000 new jobs added in April – but still behind the 770,000 new hires in March.

Following the fastest employment gains in more than a year in March, April underperformed with only about a quarter of the nearly 1 million new jobs that had been predicted. May’s workforce rebound was a positive turn and should help to offset persistent worker shortfalls. Despite the additions in May, labor shortages continued to temper hiring. Some economists had estimated that May would bring nearly 700,000 new jobs. Enhanced unemployment benefits have skewed expectations for job creation. Leisure and hospitality, the sector hit hardest by the pandemic, again led the payroll recovery in May, adding 292,000 jobs as restaurants and bars rehired laid-off workers. Public and private education added 144,000 jobs as many schools resumed in-person classes. The employment gains were broad-based. Healthcare and social assistance added 46,000 jobs; professional and business services, 35,000; and transportation and warehousing, 23,000. Yet retail and construction shed workers.