- The US added just 559,000 jobs in May, failing to meet expectations and falling short for the second straight month.
- Leisure and hospitality added the most jobs, which is another sign of recovery.
- Healthcare and social assistance remains an in-demand job right now.
Industries that were harmed due to pandemic lockdowns created more jobs in May, as leisure and hospitality once again rode the momentum of the recovery wave in the latest jobs report.
Overall, the US fell short of estimations in May, adding just 559,000 jobs, according to the US Bureau of Labor Statistics, when economists predicted about 671,000 jobs would be created in the month.
While the unemployment rate fell to a new-pandemic low, beating estimations when it dropped to 5.8% from 6.1%, the underwhelming numbers piggybacked April’s disappointing jobs report.
It’s easy to read into May’s stats and consider it a letdown, but there’s plenty of good news for hiring in certain sectors thanks to recovery, as Americans inch closer and closer to normalcy.
Hotels and restaurants are back
Leisure and hospitality added 292,000 positions in May, according to the US Bureau of Labor Statistics, which said the climb in jobs is thanks to pandemic-related restrictions being eased or lifted around the country.
Most of the jobs created come from food services and drinking places; those sectors, which were largely shuttered due to social distancing, added 186,000 jobs.
Still, there’s room for recovery: Employment in leisure and hospitality remains down by 2.5 million, or 15%, from pre-pandemic levels seen in February 2020.
Early chatter from some hotel CEOs revealed that they are seeing pre-pandemic levels of interest, and many are hiring, including Marriott.
Other industries slowed by pandemic rebound
Thanks to the reopening of schools and in-person learning, public and private education added a whopping 144,000 jobs in the month.
Healthcare and social assistance — one of the most in-demand sectors for $100K+ jobs right now — created 46,000 jobs in May, with child daycare services attributing to the bulk of the gains (18,000 jobs). That’s a sign of parents returning to work and once in-demand jobs returning.
May also saw information (29,000), manufacturing (23,000), transportation and warehousing (23,000), wholesale trade (20,000), and professional and business services (35,000) add jobs.
In professional and business services, the industry added about 14,000 jobs in accounting and bookkeeping services, according to the report.
Two industries with notable job losses were construction (-20,000) and retail (-6,000.)
The overall impact the pandemic has had on employment could make for a better future, especially for the worker.
“The pandemic has brought a reckoning or epiphany for workers, managers and business leaders that enterprises must foster better cultures and work conditions, more broadly,” Mark Hamrick, Senior Economic Analyst at Bankrate, said ahead of May’s jobs report.
“Yes, employees want reasonable pay, but also want supportive environments that don’t overlook things like childcare and mental health. The changes include taking lessons learned from remote work and applying them toward a reset for processes and expectations for the future, which will include a hybrid model for many operations. Ultimately, these changes can yield higher productivity and more employee retention, which benefit everyone.”
