U.S. payrolls rose by 172,000 in May, much more than expected; unemployment at 4.3%
Leisure and hospitality led gains with 70,000 jobs as wage growth held at 0.3%, reinforcing expectations that the Federal Reserve will keep rates steady.
- On Friday, the Bureau of Labor Statistics reported U.S. employers added 172,000 nonfarm payroll jobs in May, with the unemployment rate holding steady at 4.3%. March and April payrolls were revised upward by a combined 93,000 jobs.
- Leisure and hospitality led hiring with 70,000 new positions, while local government added 55,000 and healthcare added 35,000 jobs. These sector gains suggest hiring is broadening beyond healthcare compared to earlier months.
- Nearly 2 million Americans remained unemployed for more than six months in May, up 524,000 from the previous year. Annual wage growth slowed to 3.4%, lagging inflation that runs near 3.8% annually.
- Financial markets reacted sharply, with traders increasing bets on Federal Reserve rate hikes by year-end to roughly 70%. Policymakers signaled that rate hikes remain on the table if inflation persists, dimming expectations for cuts this year.
- External pressures from the Iran war continue to complicate the economic outlook, with energy prices remaining elevated. A 'higher-for-longer' interest rate environment may persist if inflation fails to moderate toward the Federal Reserve's 2% target.
317 Articles
317 Articles
The New Jobs Number Democrats Didn’t Want To See
President Trump’s economy just handed Democrats a number they will have trouble explaining away. The May jobs report came in hotter than expected, with 172,000 new jobs and unemployment holding at 4.3 percent. The White House pushed the headline number hard on Saturday. JOBS, JOBS, JOBS. THE NUMBERS DON’T MISS. pic.twitter.com/HC2cbjzBNN — The White House (@WhiteHouse) June 6, 2026 The cleanest part for Trump is the expectations gap. FOX Busine…
Washington. The U.S. economy created 172,000 jobs in May, well above the 85 thousand places expected by the market, while the unemployment rate remained at 4.3 percent for the third consecutive month, the Labor Department’s monthly report said.
Why hiring surged in May despite strain from the Iran war
There was surprising strength in the latest U.S. jobs report. Employers added 172,000 jobs in May, the third straight month of job gains. Overall, the labor market appears strong despite concerns about the Iran war, rising prices and artificial intelligence. Amna Nawaz speaks with Diane Swonk, chief economist at KPMG, a multinational accounting and advisory firm, for more analysis.
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