United States Unemployment Rate

The US unemployment rate held steady at 4.2% in May 2025 for a second straight month, matching market expectations. The rate has remained within a narrow 4.0%–4.2% range since May 2024. The number of unemployed rose by 71,000 to 7.237 million, while employment dropped sharply by 696,000 to 163.273 million. The labor force participation rate declined by 0.2 percentage points to 62.4%, matching February's two-year low, while the employment-population ratio declined by 0.3 percentage point to 59.7%, reaching the lowest level since January 2022. Additionally, the U-6 unemployment rate, which includes those marginally attached to the labor force and those working part-time for economic reasons, was unchanged at 7.8%.