US temporary help services jobs fell by 7,800 in May from April but increased 3.0% on a year-over-year basis, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics.

The temp penetration rate — temporary jobs as a percent of total employment — ticked down to 2.03% in May from April’s figure of 2.04%.

“While it may be disappointing to those in the staffing industry to see temporary help as the only major sector declining for the month, and for the temporary penetration rate to tick down to 2.03%, it’s important to remember that BLS employment numbers can be choppy from month to month, especially for temporary help,” said Tony Gregoire, research director at Staffing Industry Analysts. “Smoothing out the last few months suggests a trend in temporary help that is more sideways than one of substantial declines, normal for a mature stage in an economic expansion.”

Total nonfarm jobs rose by 223,000 on a seasonally adjusted basis in May. The US unemployment rate was 3.8% in May, down from 3.9% in April and its lowest rate since December 1969. The college-level unemployment rate — which can serve as a proxy for professional employment — edged down to 2.0% in May from 2.1% in April.

The US labor market continues to tighten, which has led to a small acceleration in average hourly earnings to 2.7% during the last 12 months through May, up from 2.6% last month, according to Brian Schaitkin, senior economist at The Conference Board.

“Today’s pickup in wage growth will increase the likelihood of the Federal Reserve raising interest rates three more times during 2018,” Schaitkin said in a statement. “Given the strong economic environment and increased signs of upward pressure on prices, faster wage growth represents an additional signal to the bank that the economy is bumping up against capacity constraints.”

Schaitkin also noted that job growth was broad-based in May with lagging sectors like retail trade joining booming sectors like transportation and warehousing in positive territory. “The manufacturing sector too saw continued job growth, suggesting that shortages of blue-collar workers, and upward wage pressure in those occupations, will continue,” he stated. “With so many sectors creating new job opportunities, the number of workers who have been unemployed for more than six months has fallen by almost one-third during the past year.”

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