Workspan Daily News Bytes for June 5, 2026

BLS Report Shows Higher-Than-Expected U.S. Jobs Growth

Total American nonfarm payroll employment increased by 172,000 in May, higher than analyst predictions, and the unemployment rate was unchanged at 4.3%, the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) reported on Friday, June 5.

Analysts had predicted a gain of 85,000 for the month. The robust actual number is a sign of labor market resiliency amid a growing energy and inflation crisis.

The BLS also upgraded the employment figures for March (up by 29,000, from +185,000 to +214,000) and April (up by 64,000, from +115,000 to +179,000). With these revisions, employment in March and April combined is 93,000 higher than previously reported.

Looking at unemployment and labor force participation:

The major labor market indicators continued to show little or no change in May. The unemployment rate held at 4.3% and has remained in a narrow range of 4.3% to 4.5% since July 2025. The number of unemployed people, at 7.3 million, changed little over the month.
Among the major worker groups, the unemployment rates showed little or no change for adult men (4.0%), adult women (3.8%), teenagers (14.7%), and people who are white (3.8%), Black (6.6%), Asian (3.8%) or Hispanic (5.0%).
The number of people jobless less than five weeks declined by 286,000 to 2.2 million in May, largely offsetting an increase in the prior month. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed over the month, at 2.0 million, but is up by 524,000 over the year. The long-term unemployed accounted for 27.5% of all unemployed people in May.
The labor force participation rate held at 61.8%, and the employment-population ratio changed little at 59.2%. These measures showed little change over the year, after accounting for annual population control adjustments.

Looking at the data by industry:

Leisure and hospitality added 70,000 jobs, well above the average monthly gain of 14,000 over the prior 12 months. Over the month, food services and drinking places added 48,000 jobs.
Government added 55,000, largely reflecting a gain in local government, excluding education (+44,000).
Healthcare added 35,000, in line with the average monthly gain of 38,000 over the prior 12 months. Over the month, ambulatory healthcare services added 26,000 jobs, including a gain of 11,000 in home healthcare services. Employment continued to trend up in hospitals (+6,000).
Social assistance continued to trend up (+12,000), mostly in individual and family services (+10,000). Over the prior 12 months, the sector had added an average of 17,000 jobs per month.
Mining, quarrying, and oil and gas extraction increased by 5,000 and is up by 10,000 since February.
Financial activities declined by 22,000 and is down by 107,000 since a recent peak in May 2025. Over the month, job losses occurred in insurance carriers and related activities (-11,000) and commercial banking (-3,000).
Transportation and warehousing was essentially unchanged (+1,000) but is down by 92,000 since reaching a peak in February 2025. Over the month, transit and ground passenger transportation (+9,000) and warehousing and storage (+6,000) added jobs. Air transportation lost 9,000 jobs, largely reflecting a business closure.
Employment showed little change over the month in other major industries, including construction, manufacturing, wholesale trade, retail trade, information, professional and business services, and other services.

Looking at wage-and-hour data:

Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.3%, to $37.53. Over the year, average hourly earnings have increased by 3.4%. In May, average hourly earnings of private-sector production and nonsupervisory employees rose by 8 cents, or 0.2%, to $32.31.
The average workweek for all employees on private nonfarm payrolls was unchanged at 34.3 hours in May. In manufacturing, the average workweek was unchanged at 40.4 hours, and overtime edged up to 3.1 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.8 hours.

U.S. Private Sector Added 122,000 Jobs; Pay Gains Were 4.4%

U.S. private-sector employment increased by 122,000 jobs in May and pay was up 4.4% year-over-year, according to the ADP National Employment Report, released Wednesday, June 3.

Eight out of 10 sectors showed gains last month, and employers of all sizes were hiring.

Among the goods-producing industries:

Construction, +8,000
Manufacturing, + 3,000
Natural resources/mining, -3,000

In the service-providing industries:

Education/health services, +57,000
Trade/transportation/utilities, +36,000
Professional/business services, +11,000
Leisure/hospitality, +8,000
Financial activities, +7,000
Other services, +4,000
Information, -9,000

For compensation, year-over-year pay growth for job-stayers was steady at 4.4%. For job-changers, the pace of growth slowed slightly, to 6.5% from 6.6% in April.

“Hiring was more broad-based in May than we’ve seen in the last few years,” said ADP chief economist Nela Richardson. “The labor market continues to show sustained momentum going into the summer hiring season.”

U.S. Jobs Openings Surged to 7.6 Million in April

The number of U.S. job openings increased to 7.6 million in April, according to the latest BLS Job Openings and Labor Turnover Survey (JOLTS), released Tuesday, June 2.

Among the survey’s key findings:

The number and rate of hires decreased to 5.1 million (-419,000) and 3.2%, respectively, in April.
The number and rate of total separations decreased to 5.0 million (-399,000) and 3.1%, respectively. Total separations decreased in the retail trade (-136,000). The number of “other” separations was little changed at 310,000.
The number and rate of layoffs and discharges were little changed at 1.7 million and 1.1 percent, respectively. Layoffs and discharges decreased in the retail trade (-88,000).
The number of job openings increased in professional and business services (+668,000) but decreased in finance and insurance (-135,000).

Building Skills (Particularly Tech Ones) Is a Top Business Priority

Eighty-three percent of HR professionals and information technology (IT) leaders agree that skills improvement is imperative within their organizations, according to a Workforce and Learning Trends 2026 report by CompTIA, a global provider of IT training and certifications.

The top challenge surveyed companies are facing in building workforce development programs is the cost of training, the report found, followed by factors in execution and measurement. Relatively few training programs include customization, such as personalized learning recommendations and career coaching. Meanwhile, 97% of companies acknowledged the importance of validating skills learned in training, and 94% noted the use of professional certifications as a factor in job candidate evaluations.

Eighty percent of HR and IT survey respondents reported skill gaps are at least partially driven by technology factors other than artificial intelligence (AI). For example, ongoing digital transformation has increased the need for digital fluency across every job. Training budgets reflect the importance of these skills, with 62% of companies surveyed expecting to increase spending on AI training and 51% on digital fluency.

Financial Literacy Moving in the Wrong Direction

Financial literacy in America has declined to its lowest level in a decade, according to new findings from the TIAA Institute, the research division within retirement services provider TIAA, and the Global Financial Literacy Excellence Center (GFLEC).

In its 10th year of tracking financial literacy among U.S. adults, the 2026 TIAA Institute-GFLEC Personal Finance Index found the decline is largely driven by an increase in the proportion of individuals with very limited financial knowledge, a trend that has steadily lowered overall financial literacy levels.

Additionally, generational and gender disparities persist, with more than one-third of Generation Z falling into the very lowest knowledge category and women consistently scoring below men across nearly all areas of personal finance.

Those scoring low are four times more likely to struggle to make ends meet and three times more likely to be financially fragile. Retirement fluency levels across all generations are equally sobering, with adults averaging only two correct answers out of six retirement-related questions. On the flipside, among workers with higher retirement fluency, more than 80% save for retirement on a regular basis and 70% feel confident they will have enough money to live comfortably throughout retirement.

Washington Governor Signs Menopause-Supportive EO

On Monday, June 1, Washington Gov. Bob Ferguson signed an executive order supporting women in the workplace experiencing menopause.

Executive Order 26-01 directs the Washington State Women’s Commission to work with state agencies to review and strengthen existing policies and practices related to menopause and perimenopause accommodations. Recommendations will include practical, commonsense measures like telework options, flexible dress codes, and access to cold water and temperature control.

The order also directs the Women’s Commission to work with the Department of Health, the Health Care Authority and the Bree Collaborative to draft guidance and training resources on menopause and perimenopause accommodations for state agencies and other public and private employers.

The commission will ensure agencies’ management and employees are trained on their rights and responsibilities.

Colorado’s Amended AI Law Reduces Employer Obligations

On May 14, Colorado Gov. Jared Polis signed into law the state’s amended AI bill (Senate Bill 26-189), replacing a 2024 AI statute, which was set to go into effect on June 30.

With a new effective date of Jan. 1, 2027, the amended law shifts from system-level compliance requirements to decision-by-decision accountability for employers. According to legal experts at Jackson Lewis, the law now requires:

Disclosure at the point of use. Employers must provide a plain-language description of an adverse consequential decision and the role the automated tool played in it within 30 days of a decision.
Right to challenge decisions. Individuals would be able to:
- Access the data used in the decision;
- Correct inaccuracies; and,
- Request human review or reconsideration of adverse decisions to the extent commercially reasonable.
More limited technical obligations. Developers must provide customers with sufficient information to use the automated tools appropriately. (The broader compliance architecture in the current law does not carry forward.)
Time to cure. The law provides a 60-day cure period following notice of violation from the attorney general.

Figures and Facts of the Week

206.5 billion: The U.S. dollar amount research firm Gartner forecasts businesses will spend on AI agent software spending in 2026 (up from $86.4 billion in 2025). Gartner also predicted the amount will rise to $376.3 billion in 2027.
90: The percentage of Gen Z workers who have faced negative workplace consequences (e.g., warnings, reprimands or conflicts) because of something they posted online, according to a Gen Z Digital Boundaries Report by career website Zety.
64: The percentage of U.S. workers who say they’ve applied to jobs outside their industry or typical role, according to a Career Pivot Report by employment website Monster. Better pay (33%) and job stability (29%) were the top reasons for exploring new industries.
23.2: The percentage of U.S. workers over the age of 55 in today’s workforce, according to BLS data analyzed between 2014 and 2025 by career website MyPerfectResume. The data also showed the number of workers aged 65 and older increased by more than 40%.
23: The percentage of jobs rideshare company Uber announced it will cut in the People and Places division, which covers human resources, recruitment, workplace facilities and culture, according to a Bloomberg report. A company spokesperson confirmed the affected headcount falls well below 1% of Uber’s global workforce of 34,000, though the company declined to provide a specific figure.

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