Key Labor Metrics — May 2026
Unemployment Rate
Share of labor force actively seeking work. Below 4% is historically "full employment."
Labor Force Participation Rate
Share of working-age population employed or seeking work. Pre-COVID peak was 63.4%.
62.6%
→ Slightly below pre-COVID
Job Openings (JOLTS)
Unfilled positions posted by employers. 8.1M openings vs. ~6.5M unemployed = tight market.
8.1M
▼ Down from 10M+ peak
Quit Rate
Workers voluntarily leaving jobs per month. High quit rate = workers confident they can find better jobs.
2.2%
▼ Down from 3.0% peak
Average Hourly Earnings Growth
Year-over-year wage growth across all private-sector workers. Still above CPI — real wages positive.
+4.1%
▼ Slowing from +5.9% peak
Monthly Job Gains (Nonfarm Payrolls)
New jobs added across the economy. The 3-month average of ~185K is above the ~100K needed to keep up with population growth.
+175K
→ Solid, not overheating
Unemployment Rate — 7-Month Trend
NovDecJanFebMarAprMay ▸
Nov: 3.7%Dec: 3.7%Jan: 3.7%Feb: 3.7%Mar: 3.8%Apr: 3.9%May: 3.9%
Unemployment has risen slightly from 3.7% to 3.9% — still historically excellent but showing the first signs of cooling in the labor market.
Labor Market Tightness Gauges
Openings vs. Unemployed
1.24×
Market is tighter than pre-COVID norms but clearly loosening from 2022 peaks. There are still more job openings than unemployed workers — meaning workers still have leverage.
Job Gains by Sector — May 2026
Government
+43K
Strongest month
Healthcare
+39K
Consistently adds jobs
Leisure & Hospitality
+23K
Steady recovery
Professional Services
+19K
Slowing from highs
Construction
+11K
Resilient despite rates
Manufacturing
-8K
Contracting with PMI
Retail Trade
+12K
Mixed signals
Information / Tech
-14K
Layoffs continuing
Transportation
+9K
Modest gains
Source: BLS Establishment Survey, May 2026 Employment Situation.
What this means for your business
💰
Wages still rising above inflation
At +4.1% YoY, wages are growing faster than CPI (3.4%). Real purchasing power is up. Good for consumer-facing businesses, but raises are still expected if you want to keep staff.
🧑💼
Hiring is easier than 2022
The quit rate has dropped from 3.0% to 2.2%. Workers are less likely to voluntarily leave. Retention is improving and finding candidates takes less time than 18 months ago.
📉
Tech & manufacturing laying off
If your business uses tech or manufacturing workers, the supply is improving. Laid-off tech workers are re-entering other sectors, broadening available talent pools.
⚠️
Watch the 4.5% threshold
If unemployment rises above 4.5%, the Fed will likely cut rates faster and the economy is slowing materially. We're currently at 3.9% — well below that level.