Temporary help jobs rose by 4.89% year over year in May and the temp penetration rate reached an all-time high for the second month in a row, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics. Today’s revised data also decreased April’s previously reported gain of 5,800 US temp jobs to a gain of 4,100.

The temp penetration rate — temp jobs as a percent of total employment — rose to a record-high 2.064% in May from 2.057% in April.

In addition, the year-over-year growth rate in temp jobs was 4.89% in May, up from 3.82% in April and the largest year-over-year growth rate since June 2015.

“Though overall jobs growth softened a bit in May, some deceleration is to be expected as the unemployment rate approaches the lower bounds dictated by frictional effects,” said Andrew Braswell, senior research analyst at Staffing Industry Analysts. “Temporary help showed a nice rebound from the modest gains reported in April, moving back above the year-to-date monthly average additions for our industry.”

Total nonfarm jobs rose by 138,000 on a seasonally adjusted basis, down from the gain of 174,000 in April, which was revised downward from 211,000.

The unemployment rate edged down to 4.3% in May from 4.4% in April. The college-level unemployment rate — which can serve as a proxy for professional employment — also edged down to 2.3% in May from 2.4% in April.

Bloomberg reports the US labor market gave mixed signals in May, with a decline in the unemployment rate to a 16-year low contrasting with below-forecast hiring and wage growth. The total nonfarm jobs increase fell below the median forecast in its survey of economists, which called for an increase of 182,000.

The Conference Board noted that job growth averaged 121,000 for the past three months, well below the average of 190,000 for the previous year.

“This is not surprising; with unemployment rates reaching a 10-year low of 4.3%, employers are having more difficulty finding the workers they need to fill vacancies,” The Conference Board stated. “In addition, the labor force participation rate has stopped rising for the time being, another sign that fewer potential workers remain on the sideline.”

Though the pace of job creation has slowed, the Federal Reserve is still likely to raise rates in June given current labor market tightness, according to The Conference Board.

Positives were also seen in the job numbers.

“Another solid month of job growth will bolster the already optimistic hiring plans shared by a majority of US businesses,” said Rebecca Henderson, CEO of Randstad Sourceright.

“Data collected by Randstad Sourceright in the first quarter of 2017 indicates that more than 70% of US employers are planning to hire extensively over the next year — on top of robust investments in automation — and the BLS report demonstrates that investment is already well underway,” Henderson said. “The Labor Department’s most recent figures reinforce the point that a steady growth in employment can occur hand-in-hand with continued investment in automation, which is a win-win for workers, businesses and the overall economy.”

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