A Largely Welcome Jobs Report for the Month of May

By SBE Council at 6 June, 2026, 12:33 pm

by Raymond J. Keating –

The latest employment report from the U.S. Bureau of Labor Statistics was welcome in that it both beat market expectations, and it showed key major employment indicators moving in the right direction in May. Some concerns persist as well.

First, nonfarm payroll employment increased by 172,000 in May. This marked the third month in a row of relatively solid gains. Gains largely were limited to leisure and hospitality, local government, and health care.

In addition, total nonfarm payroll employment for March and April was revised up – by 29,000, from +185,000 to +214,000 for March, and by 64,000 for April from +115,000 to +179,000. The upward revisions mean employment in March and April was a combined 93,000 higher than previously reported.

Second, the household survey (while more volatile month-to-month, it is more comprehensive, and better captures small business and startup activity) showed at least a one-month break from recent declines. Employment grew by 149,000 in May, and the labor force increased by 83,000. Also, the number of unemployed declined by 66,000. Nothing robust here, but, yes, welcome moves up.

A troubling negative came on the self-employed front. The self-employed (effectively fulltime entrepreneurs) declined in May from the same month last year – with total self-employment (incorporated plus unincorporated, not seasonally adjusted) declining from 16.85 million in May 2025 to 16.52 million in May 2026. For good measure, the BLS offers seasonally adjusted data on unincorporated self-employed, and those numbers have been on a general decline this year, from 9.81 million in January 2026 to 9.53 million in May 2026.

More questions than answers persist as to where the economy is headed, with positives, for example, like tech investment and recent tax relief being countered by swirling economic uncertainties regarding war, energy costs, tariffs and immigration. These factors influence economic growth (with recent slow real GDP growth, namely, 0.5 percent in the fourth quarter 2025 and 1.6 percent in the first quarter 2026) and labor market sluggishness.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of “The Weekly Economist” book series, and 10 Points from Walt Disney on Entrepreneurship.