WASHINGTON — U.S. employers added 172,000 jobs in May, far exceeding economists’ expectations and signaling continued resilience in the labor market despite concerns over inflation, geopolitical tensions and slowing economic growth, according to data released by the U.S. Bureau of Labor Statistics.
The unemployment rate held steady at 4.3% in May, where it has remained within a narrow range of 4.3% to 4.5% since July 2025, the BLS reported. The number of unemployed Americans was little changed at 7.3 million.
The increase in nonfarm payroll employment was well above forecasts by economists, who had generally expected job growth of roughly 80,000 positions during the month.
“”May’s jobs report came stronger than anticipated, and the upward revisions to March and April suggest the labor market may be moving past the softer hiring patch we saw earlier this year,” America’s Credit Unions Senior Economist Dawit Kebede said in a statement. “The trend over the last three months is encouraging. For the Federal Reserve, this data reinforces a patient posture. With the labor market holding up and inflation still above target, there is no urgency to cut rates. And if inflation continues to move in the wrong direction, the possibility of additional rate hikes cannot be ruled out entirely.”
May Stronger Than April
The May gain also marked an acceleration from April, when employers added 115,000 jobs. The BLS revised prior estimates higher, reporting that March payroll growth was revised upward by 29,000 jobs to 214,000 and April payroll growth was revised upward by 64,000 jobs to 179,000. Together, the revisions added 93,000 jobs to previously reported totals.
The BLS data show job growth was concentrated in several sectors, including leisure and hospitality, health care and local government. Leisure and hospitality added approximately 70,000 jobs during the month, while local government employment increased by about 55,000 and health care added roughly 35,000 positions. Financial activities lost jobs during the month.
Average hourly earnings increased 0.3% in May and were up 3.4% from a year earlier. However, some economists noted wage growth continues to trail inflation, limiting gains in workers’ purchasing power.
Third Month of Gains
The report also followed other recent signs of labor-market stability. Job openings rose to about 7.6 million in April, while employers continued to add workers despite elevated energy prices and uncertainty tied to international conflicts.
The May report marked the third consecutive month in which payroll gains exceeded 100,000 jobs, a trend not seen in more than a year.
