US job growth continues as hiring slows and labour demand levels off

The US economy added 123,700 jobs in May 2026, according to new data from Revelio Public Labor Statistics, with growth concentrated in public administration, healthcare and professional services.

Revelio’s latest labour market analysis points to continued employment growth but a more cautious labour market, with hiring rates, job postings and salaries in new vacancies all declining during the month.

Public Administration, Health Care and Social Assistance, and Professional and Business Services recorded the largest employment gains. Retail Trade and Leisure and Hospitality continued to lose jobs, extending a trend that has persisted through much of 2026. 

Hiring slows but employment rises

Both hiring and attrition declined during May. Hiring fell by 0.9 percentage points month-on-month, while attrition fell by 1.3 percentage points.

Because fewer employees left their organisations than entered them, overall employment continued to grow.

Leisure and Hospitality saw the sharpest fall in hiring, down 4.0 percentage points compared with April. Most sectors reported lower hiring activity, although Public Administration continued to increase hiring.

Attrition declined across much of the economy, particularly in Other Services, Leisure and Hospitality, Public Administration and Transportation and Warehousing. Healthcare, financial services and professional services also recorded lower attrition rates.

The Information sector remained an exception, with attrition increasing slightly and remaining above levels seen elsewhere in the economy.

Layoffs remain stable

Mass layoff notifications fell modestly in May.

Employers notified around 31,000 workers of layoffs through WARN filings, down from 34,800 in April. Overall levels have remained relatively stable since the start of the year.

Transportation and Warehousing recorded the highest number of employees affected by layoff notifications. Revelio attributed much of this activity to the closure of Spirit Airlines following the collapse of a proposed government bailout and rising fuel costs.

The Information sector recorded the second highest volume of notified layoffs. Meta accounted for a significant share after announcing plans to reduce its workforce by 10% as it increases investment in artificial intelligence.

Job openings plateau

Active job postings fell by 0.3% between April and May, continuing a pattern of stabilisation that began during the second half of 2025.

The Information sector recorded the largest monthly decline, with active postings falling by 3.6%.

Some sectors moved in the opposite direction. Active postings increased by 2.6% in Leisure and Hospitality and by 1.0% in Financial Activities.

Education and Health Services, Professional and Business Services and Information recorded the largest reductions in overall posting volumes. Retail Trade and Public Administration also posted notable declines.

Dollar General reduced posting activity during the month, while federal government vacancies also declined amid ongoing efforts to reduce public sector headcount.

Salary growth weakens

Advertised salaries in new job postings fell by 0.4% during May.

Retail Trade and Mining, Quarrying and Oil and Gas Extraction drove the decline. Sally Beauty Holdings, Victoria’s Secret, ExxonMobil and Baker Hughes all recorded notable reductions in salaries attached to newly advertised roles.

Information and Transportation and Warehousing bucked the trend, with salaries in new postings increasing during the month.

For learning and workforce development leaders, the data suggests employers remain cautious about expanding headcount. Organisations continue to add jobs overall, particularly in healthcare, government and professional services, but lower hiring activity and stable job openings point to a labour market that is growing more slowly than in previous years.