The U.S. economy added 172,000 jobs in May, more than double economists’ expectations, while unemployment held steady at 4.3%.
Leisure and hospitality, health care and government were the biggest sources of new jobs, making them the strongest targets for job seekers.
Financial activities, information and parts of retail continued to shed jobs, signaling a tougher market for white-collar applicants.
The labor market delivered a pleasant surprise for job seekers in May.
Employers added 172,000 jobs during the month, far exceeding forecasts of roughly 80,000 new positions. The unemployment rate remained unchanged at 4.3%, suggesting that hiring remains healthy despite concerns about inflation, interest rates and global uncertainty.
Revisions to March and April payroll figures added another 93,000 jobs, indicating the labor market has been stronger than previously thought.
For workers looking for a new job, the report offers a clear roadmap: some industries are hiring aggressively, while others continue to pull back.
Best sectors for job seekers
Leisure and hospitality
If you're looking for the fastest path to employment, restaurants, hotels, entertainment venues and tourism-related businesses are leading the way.
Leisure and hospitality added roughly 70,000 jobs in May, making it the strongest-performing sector by a wide margin. Employers appear to be ramping up staffing ahead of the summer travel season.
Best opportunities:
Restaurant and food-service workers
Hotel staff
Event and entertainment employees
Tourism and recreation workers
Health care
Health care continues to be one of the most reliable sources of job growth in the U.S. economy.
The sector added between 35,000 and 47,000 jobs in May, depending on the data series cited, continuing a multiyear hiring trend fueled by an aging population and persistent demand for medical services.
Best opportunities:
Registered nurses
Medical assistants
Home health aides
Therapists
Administrative support staff
Government
Local government hiring surged in May, adding approximately 55,000 jobs. Schools, public services and municipal agencies accounted for much of the increase.
Best opportunities:
Education support roles
Public administration
Municipal services
Public safety support positions
Construction
Construction posted another month of gains, extending a positive streak despite higher borrowing costs. While growth was more modest than in hospitality or health care, the sector continues to add workers.
Best opportunities:
Skilled trades
Project management
Equipment operators
Construction laborers
Sectors where hiring is slowing
Financial activities
Banks, insurance companies and other financial firms cut jobs in May. Financial activities lost roughly 22,000 positions, making it one of the weakest sectors in the report.
Job seekers in finance may face longer searches and increased competition for openings.
Information
Technology, media and communications companies continued to struggle.
The information sector lost jobs in May and was also identified by ADP as one of the few major industries not adding workers. Analysts note that many white-collar employers remain cautious about expanding payrolls.
Retail
Retail employment declined in May, suggesting consumer-facing stores remain cautious despite a generally healthy economy.
Workers seeking retail positions may find more seasonal openings this summer, but the sector is not generating jobs at the pace seen in hospitality or health care.
What it means for job seekers
The May report marks the third consecutive month of stronger-than-expected hiring and provides evidence that the labor market has regained momentum after a sluggish period earlier this year.
For job seekers, the message is straightforward:
Focus your search on hospitality, health care, government and construction.
Be prepared for greater competition in finance, technology and media-related fields.
Workers willing to switch industries may find significantly faster hiring in service-sector and health-care occupations.
Employers are still hiring, but opportunities are increasingly concentrated in a handful of sectors rather than spread evenly across the economy.
The labor market remains healthy overall, but where you look for work may matter more than ever.