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BGSF May 2025 Jobs Report: Slower Growth, Rising Wages & Service Sector Momentum

  • Bgsf
  • 6 days ago
  • 3 min read

The U.S. economy added 139,000 jobs in May, beating expectations but coming in below April’s revised figure of 147,000. The unemployment rate held steady at 4.2%, where it’s hovered for the past year.

Wages climbed more than expected, with average hourly earnings up 0.4% for the month and 3.9% year-over-year — a sign that employers are still under pressure to offer competitive compensation, even as overall hiring cools.

BGSF May 2025 Jobs Report

🏥 Where the Jobs Were: Services Lead the Way

Job growth in May was heavily concentrated in a few key service sectors:

  • Health care: +62,000 jobs 

  • Leisure and hospitality: +48,000 jobs 

  • Social assistance: +16,000 jobs 

Together, these three categories accounted for nearly 90% of all new jobs last month.

On the flip side, federal government jobs dropped sharply, shedding 22,000 positions. This was partially offset by hiring at the state and local level, resulting in a net loss of 1,000 government jobs.


Rental & Leasing Services: A Steady Rise, and Still Climbing

One of the more quietly impressive performers this year? Rental & Leasing Services, which added 2,900 jobs in May, bringing total employment in the industry to 596,300. That’s a year-over-year gain of 21,700 jobs — the strongest 12-month growth this segment has seen in quite some time.

“The demand in rental and leasing is back — and in a big way,” said Kelly Brown, President BGSF Property Management Division.

“We’re seeing businesses ramp up staffing across leasing operations, customer service, and maintenance. It’s a strong hiring environment for anyone ready to jump in.”

 As summer approaches, employers in this space are responding to rising demand — and job seekers looking for fast-paced, stable work would be smart to take a closer look.


Labor Force Insights: Participation Drops Slightly

While hiring continued, labor force participation dipped to 62.4%, and the employment-population ratio fell to 59.7% — subtle shifts that may reflect seasonality or growing caution as tariffs and inflation concerns ripple through the economy.

Other key takeaways:

  • The broader U-6 unemployment rate (which includes discouraged and underemployed workers) held steady at 7.8% 

  • Long-term unemployment declined by 218,000, a positive sign for workforce reintegration 

  • Wages continue to rise, offering some relief amid cost-of-living pressures 


What This Means for You

This is not a red-hot labor market — but it’s not cooling dramatically either. Instead, we’re seeing targeted growth in sectors tied to direct consumer demand, seasonal services, and economic stability.

For Employers:

  • In rental & leasing, act early to secure talent ahead of summer spikes 

  • Wages are rising — competitive pay matters more than ever 

For Job Seekers:

  • There is real opportunity in service sectors 

  • Rental & leasing offers a strong path for entry and upward mobility


Let’s Connect

At BGSF, we’re here to help both businesses and job seekers navigate these shifts. Whether you’re looking to hire top talent or land your next role, we’ve got the expertise to guide you. Let’s connect and make 2025 a year of opportunity! Contact BGSF today!


About BGSF

BGSF is a leading workforce solutions provider that connects employers with top talent across industries such as property management, professional services, IT, and managed solutions. With a commitment to building strong partnerships, BGSF delivers innovative staffing strategies that empower businesses and job seekers alike.

For media inquiries, please contact our Media Relations

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