WASHINGTON — U.S. employers added 172,000 jobs in May, beating economists’ forecasts, while the unemployment rate held steady at 4.3 percent, the Labor Department reported.
The Bureau of Labor Statistics said on Friday that job gains occurred in leisure and hospitality, local government and health care. The figure exceeded expectations, with economists polled by various outlets having forecast gains of around 85,000.
Revisions to prior months showed stronger growth than initially reported, with March revised to 214,000 and April to 179,000, according to the department.
"The labor market is finding its footing," one economist familiar with the data said.
Average hourly earnings rose modestly, though wage gains softened and may not have kept pace with inflation in some sectors, officials indicated. Job gains were concentrated in service-providing industries, while employment in financial activities declined.
The report comes as the Federal Reserve monitors labor market conditions amid efforts to manage inflation. President Donald Trump highlighted the figures as evidence of economic strength under his administration.
The southern Philippines earthquake and Middle East tensions were separate developments that had limited immediate impact on U.S. labor data, economists said. Details on sector-specific breakdowns remained subject to further revision in coming months.
As of Monday, markets were assessing the implications of the stronger-than-expected report. The unemployment rate has remained relatively stable in recent months.
The Labor Department noted that the number of people jobless for less than five weeks declined, though long-term unemployment saw some increase. No immediate comments were available from the White House beyond initial reactions to the data release.
Officials urged continued monitoring of the labor market. Further data on wages and participation rates will be released in subsequent reports.
