US Employers Likely Added 105,000 Jobs in May Amid Stable Labor Market

The American job market is demonstrating unexpected resilience, with forecasters predicting employers added 105,000 jobs in May. This figure, while down slightly from April's 115,000, signifies a stable labor market that has climbed out of a rut. The unemployment rate is expected to remain low at 4.3%.

However, this stability masks a frustrating reality for many. Job creation has significantly slowed since the post-pandemic surge, leaving young people and long-term unemployed individuals struggling to find opportunities. "Those who have jobs are clinging to them, while those without are left wanting," noted Diane Swonk, chief economist at KPMG. This has created a "labor market purgatory" where workers are reluctant to leave their current positions, leading to a drop in quits to the lowest level since August 2020.

“

Those who have jobs are clinging to them, while those without are left wanting. The result is a sense of being frozen or left in a sort of labor market purgatory.

Healthcare companies are the primary drivers of job growth, adding over 456,000 jobs in the past year, while all other U.S. employers collectively lost 205,000. This trend aligns with long-term predictions due to an aging population's increasing healthcare needs. Experts question why other industries are not experiencing similar growth, suggesting a potential explanation could be an immigration crackdown that has reduced the available labor supply.

The economy has received a boost from tax refunds following President Donald Trump's 2025 tax cuts, helping to offset the impact of high energy prices stemming from the conflict with Iran. Nevertheless, gasoline prices remain above $4 per gallon, and the refunds have largely been saved rather than spent.

“

The question is not why healthcare has kept hiring, it is why other industries have not.