On paper, the May jobs report delivered another encouraging headline: The U.S. economy added 172,000 jobs, marking the third consecutive month of job gains this year. Unemployment remained unchanged at 4.3%, and job growth was more widespread than it had been in the two previous months, when job growth in health care dominated. In May, leisure and hospitality led the growth pack, followed by government and health care, according to the Bureau of Labor Statistics.

But beneath the surface, economists say the labor market is showing a tale of two realities where the economy is creating jobs while workers who have been laid off or who are new to the labor force (such as recent college grads) are finding it harder to land one. Overall, the share of unemployed people who have been out of work for 27 weeks or more rose to 27.5% in May, up from 20.4% a year ago. Meanwhile, the unemployment rate for recent college graduates between ages 22-27 is 5.6%, higher than the overall unemployment rate.

“I think we have to acknowledge that this is a brightening picture,” said Mark Hamrick, Washington bureau chief and senior economic analyst at personal finance platform Bankrate. “But, there is no shortage of challenges for Americans and the U.S. economy.” When you look at the details, he added, “the glowing narrative starts to lose some of its shine.”

Moreover, Hamrick points out that job growth isn’t even across the board, with some industries more vulnerable to having work........

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