North Carolina unemployment rate holds at 3.7% in May

RALEIGH — North Carolina’s seasonally adjusted unemployment rate remained unchanged at 3.7% in May, according to figures released Tuesday by the N.C. Department of Commerce.

The state rate was below the national unemployment rate, which also remained unchanged at 4.3%. North Carolina’s unemployment rate was down 0.1 percentage point from a year earlier.

The number of people employed in North Carolina decreased by 11,988 over the month to 5,086,003, while the number of unemployed people decreased by 1,998 to 194,590. Compared with May 2025, the number of employed people was down 2,157, and the number of unemployed people was down 7,164.

Seasonally adjusted total nonfarm employment increased by 17,400 jobs in May, reaching 5,118,900. The largest over-the-month gains were in leisure and hospitality services, which added 6,600 jobs, and professional and business services, which added 6,000 jobs.

Private education and health services added 3,600 jobs. Government employment increased by 1,400 jobs, while trade, transportation and utilities added 1,200. Construction added 1,000 jobs, information added 400, and other services added 200.

Two major industry sectors reported declines. Manufacturing employment fell by 2,700 jobs, while financial activities declined by 300 jobs. Mining and logging employment was unchanged.

Over the year, total nonfarm jobs increased by 61,800. The private sector accounted for 56,000 of those jobs, while government employment increased by 5,800.

Private education and health services led year-over-year gains with 23,000 additional jobs. Leisure and hospitality services added 17,000 jobs, and construction added 13,600.

Manufacturing showed the largest year-over-year decline, losing 12,600 jobs. Information employment declined by 2,200 jobs over the same period.

The next unemployment update is scheduled for Wednesday, July 1, when county unemployment rates for May are expected to be released.

Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.