May 2026 Market Trends Report
After a solid April, the labor market added another 172,000 jobs in May, while the unemployment rate held steady at 4.3%, according to the Bureau of Labor Statistics. Growth was led by leisure and hospitality, local government and healthcare, but other industries also posted strong hiring numbers.
Improvement in the broader employment market included 17,000 new jobs in construction and 7,00 in manufacturing. Warehousing and storage added more than 6,000 jobs, picking up steam from modest gains in April, indicating further hiring demand in a key logistics segment.
As in recent months, healthcare has remained a major driver of employment growth with 35,000 jobs added. This progress helped to offset softer performance in areas like financial activities, which declined month over month.
May’s jobs report showed a job market that continued to expand at a moderate pace. While unemployment and labor force participation were largely unchanged, overall hiring remained stronger than expected.
Jobs Market Overview: May 2026
4.3%
Overall unemployment rate
The unemployment rate remained relatively steady, falling between the post-pandemic low of 3.4% in April 2023 and the recent high of 4.5% in November 2025.
+172k
Jobs added
The U.S. economy exceeded expectations again in May, posting another month of strong job growth. April’s total was revised up to 179,000 jobs, underscoring a labor market that remains resilient.
61.8%
Labor force participation rate (LFPR)
Industry Employment Trends
OVERALL ECONOMY
+172k
Monthly job change
(+503k year over year)
| Industry | Monthly Job Change | YOY Difference |
| Manufacturing | +7k | -46k |
| Automotive | +3.6k | -16.2k |
| Warehousing & Storage | +6.4k | -32.9k |
| Architectural & Engineering | +1.7k | +41k |
| Construction | +17k | +68k |
Source: Bureau of Labor Statistics' Economic News Release
Market Spotlight
“Healthcare hiring remained strong in May, but that growth is putting more pressure on hospital onboarding systems. As medical costs rise and compliance requirements become more complex, delays in screening and credentialing can lead to candidate drop-off, open roles and added strain on the facilities and support teams that keep hospitals running.”
Quinn Heimann
Director and Divisional Lead — Facilities & Maintenance
Sector-by-Sector News: May 2026
Healthcare Jobs Report
Healthcare remained a steady source of job growth in May, adding 35,000 jobs, according to the latest BLS data. Gains were concentrated in ambulatory healthcare services, especially outpatient and home health settings, while hospitals expanded payrolls at a more measured pace.
While sectors like manufacturing and other cyclical industries experience uneven or slowing hiring, healthcare demand are tied to demographics rather than economic cycles, particularly an aging population and increasing chronic care needs This is making the industry one of the most reliable drivers of monthly job growth, even in periods of economic uncertainty.
Construction Jobs Report
Month-over-month jobs change: +17,000
Year-over-year jobs change: +68,000
Construction employers continued to add jobs, with the industry gaining more than 50,000 positions since March 2026, driven by data center construction and publicly funded projects. Associated Builders and Contractors’ (ABC) Construction Confidence Index also forecasts rising staffing levels over the next six months.
Even with recent gains, several factors could slow construction hiring. In particular, ABC Chief Economist Anirban Basu said labor market stability and stubborn inflation could keep borrowing costs high and lending standards tight.
Manufacturing Jobs Report
Month-over-month jobs change: +7,000
Year-over-year jobs change: -46,000
March Manufacturing PMI: 54%
*A PMI reading above 50% suggests economic activity is expanding.
Manufacturing added 7,000 jobs in May, a modest gain that points to a potentially growing sector, but one without broad-based momentum.
Although the Institute for Supply Management (ISM) reported a May PMI of 54%, elevated from 52.7% in April, manufacturing employment remained down year over year, underscoring that manufacturers are still climbing out of a softer stretch. For employers, that points to enduring caution around workforce planning even as some subsectors regain traction.
Manufacturing activity expanded for the fifth consecutive month, with faster momentum across several key measures including new orders, production and backlog of orders. The Prices Index remained elevated at 82.1%, though down slightly from April, signaling that cost pressures are still significant even as demand improves.
Warehousing & Storage Jobs Report
Month-over-month jobs change: +6,400
Year-over-year jobs change: -32,900
March Logistics Managers' Index (LMI): 69.9*
*An LMI reading above 50 indicated logistics are expanding.
The Logistics Managers’ Index (LMI) remained heightened in May at 69.5, following April’s exceptionally strong reading of 69.9. While the pace of expansion eased, the index still points to solid logistics activity and persisting pressure across key parts of the supply chain.
According to the May report, increased transportation prices persisted and transportation capacity continued to be a challenge, while inventory levels and warehousing pressures expanded. This indicates the logistics market is still active, although cost pressure and constrained transportation capacity are still impacting operating conditions.