WASHINGTON — U.S. employers added 172,000 jobs in May, exceeding economists’ expectations, while the unemployment rate held steady at 4.3 percent, the Bureau of Labor Statistics reported on Friday.
The gain in total nonfarm payroll employment followed a revised increase of 179,000 jobs in April, according to the government’s monthly Employment Situation report. Job gains occurred in leisure and hospitality, local government, and health care, while employment in financial activities declined.
The labor market has shown resilience amid shifting economic conditions. Economists had anticipated around 85,000 to 130,000 jobs added for the month, making the May figure notably stronger than forecasts.
In the establishment survey, leisure and hospitality led gains, followed by local government and health care sectors. Financial activities shed 22,000 jobs during the month. Revisions to prior months added a net 93,000 jobs to earlier estimates, the BLS said.
The household survey, which measures unemployment, showed the jobless rate unchanged at 4.3 percent. The number of unemployed people stood at about 7.3 million. Average hourly earnings rose 0.3 percent in May to $37.53, up 3.4 percent from a year earlier.
“May’s jobs report came in stronger than expected this morning,” said Elise Gould, senior economist at the Economic Policy Institute. “The economy added 172,000 jobs in May and the unemployment rate held steady at 4.3 percent.”
The data arrives as policymakers monitor inflation, interest rates, and consumer spending. The Federal Reserve has been balancing efforts to support employment while addressing price pressures. Friday’s figures may ease some concerns about a slowdown, though longer-term trends remain subject to future data.
The BLS noted that employment in financial activities has declined by 107,000 since a recent peak in May 2025. Meanwhile, sectors such as health care have continued to show consistent gains, reflecting ongoing demand in essential services.
Revisions to previous months’ data are common in the BLS reports as more complete information becomes available. The agency uses two separate surveys — the establishment survey for payrolls and the household survey for labor force status — which can sometimes produce differing pictures of the labor market.
As of May 2026, total nonfarm employment continued to expand, though at a pace that varies by industry. Details on wage growth and hours worked were also included in the full report.
The next employment report, covering June, is scheduled for release in early July.
