US adds 172,000 jobs in May, unemployment steady at 4.3%

The United States economy demonstrated continued resilience in May as employers added 172,000 jobs, and the unemployment rate remained stable at 4.3 percent. This indicates ongoing strength despite some signs of slowing growth.

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Total nonfarm payroll employment increased by 172,000 in May, and the unemployment rate was unchanged at 4.3 per cent.

According to the U.S. Bureau of Labor Statistics, job gains were primarily concentrated in specific sectors. Leisure and hospitality led the way, adding 70,000 positions, significantly above its 12-month average. Local government employment also saw an increase of 55,000, particularly outside the education segment. Health care continued its upward trend, contributing 35,000 jobs, with ambulatory health care services showing notable growth.

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Job gains occurred in leisure and hospitality, local government, and health care. Employment in financial activities declined.

However, the financial activities sector experienced a downturn, shedding 22,000 jobs in May and marking a decrease of 107,000 jobs since its peak in May 2025. Job losses were observed in insurance carriers and related activities, as well as commercial banking.

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The unemployment rate held at 4.3 per cent and has remained in a narrow range of 4.3 per cent to 4.5 per cent since July 2025.

The report also highlighted revisions to previous employment figures. The March payroll gain was revised upward by 29,000 to 214,000, and April's figure was increased by 64,000 to 179,000. These revisions mean that combined employment for March and April was 93,000 higher than initially reported. Wage growth remained moderate, with average hourly earnings increasing by 12 cents, or 0.3 percent, to $37.53 in May, a 3.4 percent rise over the past 12 months.

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The labor force participation rate held at 61.8 per cent in May, and the employment-population ratio changed little at 59.2 per cent.