US Economy Adds 172,000 Jobs in May, Outperforming Forecasts
The US labor market delivered another strong performance in May as employers added 172,000 jobs, significantly exceeding economists’ expectations and reinforcing signs of economic stability.
According to data released by the Bureau of Labor Statistics on Friday, total nonfarm payroll employment increased by 172,000 during the month, nearly double the market forecast of 85,000. The latest figure closely followed April’s revised gain of 179,000 jobs, reflecting sustained hiring momentum across key sectors.
The unemployment rate remained unchanged at 4.3%, continuing a trend that has kept joblessness within a narrow range between 4.3% and 4.5% since mid-2025. The number of unemployed Americans held steady at approximately 7.3 million, while labor force participation remained at 61.8%.
Leisure and hospitality emerged as the strongest contributor to job growth, adding 70,000 positions during May. Restaurants, bars, and food service establishments accounted for a substantial share of those gains, reflecting robust consumer activity.
Local government employment also recorded a notable increase of 55,000 jobs, with most growth occurring outside the education sector. Healthcare continued its steady expansion by adding 35,000 positions, driven primarily by ambulatory care providers, home healthcare services, and hospitals.
Social assistance services maintained their upward trajectory as employers added another 12,000 jobs, largely within individual and family support programs.
Despite the overall positive picture, some industries faced challenges. Employment in financial activities declined by 22,000 jobs, extending a broader downturn that has erased more than 100,000 positions since its peak in 2025. Insurance companies and commercial banks were among the sectors experiencing the largest losses.
Transportation and warehousing employment remained relatively flat. While overall payrolls edged higher, the industry continued to operate below previous employment peaks, with air transportation recording a significant decline linked to a business closure.
Wage growth remained steady as average hourly earnings increased by 12 cents, reaching $37.53. On a yearly basis, earnings rose by 3.4%, suggesting continued income growth for workers. Meanwhile, the average workweek remained unchanged at 34.3 hours.
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