June 2025 Market Trends Report
Employers continued a steady run of hiring, adding 139,000 jobs in May, according to the Bureau of Labor Statistics’ (BLS) Employment Situation Summary.
The labor market continues to persevere, and unemployment remains at 4.2% in spite of inflation, interest rate increases and trade war tensions.
While the labor report has shown strength in the face of market pressures, job growth is slowing, and gains are narrow.
Forwarding a trend of concentrated growth, healthcare (+78,300 jobs) and leisure and hospitality (+48,000 jobs) employers added the majority of jobs.
Among the industries that lost jobs, government shed 22,000 payrolls, which were offset by state and local government agencies adding 21,000 jobs.
In the midst of market uncertainty, it seems employers are hesitant to let go of employees, with layoff and discharge rates sitting at 1–1.1% throughout 2025. However, some economists anticipate the unemployment rate will rise if job growth continues to slow in the coming months.
Jobs Market Overview: May 2025
4.2%
Overall unemployment rate
Unemployment maintained a historically low rate through May.
139k
Jobs added
The job market remains resilient despite market pressure, yet growth was highly concentrated across a few industries.
62.4%
Labor force participation rate
Labor force participation decreased by 0.3%, reaching a new low since January 2023.
Industry Employment Trends
OVERALL ECONOMY
+139k
Monthly job change
(+1,733,00 year over year)
| Industry | Monthly Job Change | YoY Difference |
| Manufacturing | -8k | -88k |
| Automotive | +0.4k | -22.4k |
| Warehousing & Storage | -5.1k | -22.6k |
| Architectural & Engineering | -1k | +43.2k |
| Construction | +4k | +126k |
Source: Bureau of Labor Statistics' Economic News Release
Hospital Facilities Maintenance Outlook
“With high demand and low unemployment within healthcare, hospitals are hiring from a dwindling workforce, which will continue to challenge the industry. When it comes to staffing reliable facilities and maintenance teams that curate a positive patient experience, reactive hiring is not an option. Instead, hospitals should create scalable five-year staffing plans aligned to realistic growth goals.”
Quinn Heimann
Director and Divisional Lead — Facilities & Maintenance
Sector-by-Sector News: May 2025
Healthcare Jobs Report
Healthcare is the fastest-growing industry of 2025, leading the BLS’ reports in employment growth each month. In May, healthcare accounted for 62,200 of the 139,000 jobs added, and the unemployment rate has hovered between 2.5–2.8% throughout the year.
In addition to needing trained medical staff, hospitals are competing to procure facilities and maintenance skill sets that are in high demand within healthcare — and across other industries.
To maintain a positive patient experience, retention strategies (e.g., apprenticeship programs, well-being initiatives, competitive benefits) and swift employee onboarding are essential.
Construction Jobs Report
Construction Monthly Employment Change: +4,000 jobs
Job growth continued in the construction industry at a slower rate, with employers adding 4,000 jobs in May (compared to 11,000 in April).
Payrolls grew across all sectors, with the exception of residential specialty trade contracting, which lost 11,000 jobs. The industry has also seen substantial growth year over year, with employers adding 126,000 jobs.
Despite pervasive economic uncertainty, contractors seem optimistic, with staffing levels continuing to expand, especially across nonresidential construction, which added 11,300 jobs.
Month-over-month job changes:
Nonresidential:
- Building: +3,100 jobs
- Heavy and civil engineering: +3,700 jobs
- Specialty trade contractors: +4,500 jobs
Residential:
- Building: +3,600 jobs
- Specialty trade contractors: -11,000 jobs
Throughout 2025, public-sector investments and elevated backlogs have buoyed construction growth, culminating in historic lows of joblessness. In May, unemployment dramatically dropped to 3.5% (from 5.6% in April and an annual high of 7.2% in February), driven in part by seasonal demand.
Across most construction sectors, hiring continues to rev at a faster pace than the broader economy. The tightening labor supply could bring discomfort as companies plan to increase their staffing levels over the next six months, according to Associated Builders and Contractors’ Construction Confidence Index.
Warehousing & Storage Jobs Report
Warehousing & Storage Monthly Employment Change: -5,100 jobs
May Logistics Managers’ Index: 59.4*
*A reading above 50 indicates expanding logistics.
The Logistics Manager’s Index (LMI) rose to 59.4 in May, up from 58.8 in April and 57.1 in March (a seven-month low). The PMI reflects modest improvement driven by higher costs, despite slower inventory growth (51.5) that hovers close to “no movement” territory.
The sector continues to face elevated inventory and warehousing expenses due to tariff-related stockpiling, while resilient transportation metrics — especially downstream — highlight a complex economy with mixed growth signals.
After warehousing and storage hiring skyrocketed in April (+9,900 jobs), it diminished in May, with employers cutting 5,100 jobs.
Additionally, warehousing capacity is down from last month (-5.4) with no movement (reading in at 50). According to LMI, “This suggests that the inventories that were rushed into the country earlier this year are now static and holding them is expensive.”
Despite job losses in the warehousing and storage sub sector, growth was sustained in the larger transportation and warehousing segment of the BLS’ report (+5,800 jobs).
Manufacturing Jobs Report
Manufacturing Monthly Employment Change: -8,000 jobs
May Manufacturing PMI: 48.5%
*A PMI below 50% suggests economic activity is expanding.
Manufacturing employment decreased again in May (-8,000 jobs), and the PMI Manufacturing Index edged down to 48.5%. The industry has also lost 88,000 jobs year over year.
U.S. manufacturing has remained in contraction due to weakened demand and output alongside rising costs. Market uncertainty has disrupted operations, causing delays and higher costs, which complicates procurement strategies.
The manufacturing PMI is moving in the opposite direction of the overall economy, which has registered growth for the past 61 months (after one month of contraction in April 2020).
The ISM’s report highlights ongoing economic headwinds, with companies adjusting production plans and continuing destaffing efforts.
Manufacturing industries that reported growth in May include:
- Plastics & Rubber Products
- Nonmetallic Mineral Products
- Petroleum & Coal Products
- Furniture & Related Products
- Electrical Equipment
- Appliances & Components
- Fabricated Metal Products
- Machinery
Manufacturing industries that contracted in May include:
- Paper Products
- Wood Products
- Printing & Related Support Activities
- Food, Beverage & Tobacco Products
- Transportation Equipment
- Chemical Products
- Primary Metals