US economy saw strong May job growth. Here’s what that means for South Florida
U.S. employers hired more than expected in May as the economy added 172,000 jobs, roughly double what analysts had forecast, and the unemployment rate held at 4.3%.
That might come as especially good news to South Florida, as some of the region’s largest employment industries posted the strongest gains.
But those waiting on lower interest rates to buy a home will likely have to keep waiting, said Bryan Cutsinger, a professor of economics at Florida Atlantic University’s College of Business. The strong jobs data, combined with higher-than-ideal inflation, means the Federal Reserve is highly likely to hold interest rates at its next meeting on June 17.
Leading the hiring surge were the leisure and hospitality sector, which added a combined 70,000 new jobs, potentially due to the upcoming World Cup, said Cutsinger.
Leisure and hospitality is one of the Miami metropolitan area’s largest job sectors, employing just over 10% of the local workforce — more than 350,000 people, according to the Bureau of Labor Statistics.
Local government and healthcare — also major sources of employment in Miami — posted similarly strong growth figures, adding 55,000 and 35,000 jobs, respectively.
May marked the third consecutive month of strong job growth despite a year of economic uncertainty in trade and immigration policy, as well as the war with Iran.
Long-term unemployment still high
But, warned the FAU economist, long-term unemployment remains elevated. Roughly 2 million Americans are long-term unemployed, meaning they’ve been jobless for at least 27 weeks but are looking for work, a 35% increase over the last year.
Economic uncertainty surrounding tariff policy could be at least partially to blame, said Cutsinger, as could geopolitical instability.
And while AI’s effect on the economy-wide labor market remains to be seen, a Stanford study published late last year shows that employment among young workers entering AI-exposed occupations declined 16% between 2022 and 2025.
But the “jury’s still out” on AI’s impact on employment more generally, said Cutsinger.
This story was produced with financial support from supporters including The Green Family Foundation Trust and Ken O’Keefe, in partnership with Journalism Funding Partners. The Miami Herald maintains full editorial control of this work.
