WASHINGTON — The U.S. economy added 172,000 jobs in May, exceeding economists' forecasts, the Bureau of Labor Statistics reported on Friday.
The unemployment rate held steady at 4.3 percent, the agency said.
Job gains occurred in leisure and hospitality, local government, and health care, while employment in financial activities declined, according to the BLS establishment survey.
Economists surveyed ahead of the release had anticipated payroll growth of around 85,000 for the month.
The May figure was similar to the revised gain of 179,000 jobs reported for April. Prior months saw upward revisions totaling additional jobs, the data showed.
In the household survey, the unemployment rate remained unchanged in a narrow range of 4.3 percent to 4.5 percent since July 2025. The number of unemployed people stood at levels consistent with recent months.
Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.3 percent, to $37.53 in May. Over the year, earnings increased 3.4 percent.
Sector details indicated strength in service-providing industries. Leisure and hospitality added a notable portion of the gains, supported by ongoing demand in consumer-facing services. Health care continued its steady expansion, reflecting demographic trends and persistent staffing needs. Local government employment also rose.
The report arrives as policymakers monitor the labor market's resilience amid broader economic conditions. The data provides the latest snapshot following previous months of moderate growth.
The Bureau of Labor Statistics compiles the monthly employment situation report from surveys of households and establishments. Revisions to prior data are common as more information becomes available.
"The labor market continues to show resilience," a senior administration official said, noting the beat on expectations.
Details on wage growth and industry breakdowns will be monitored closely in coming weeks. The next employment situation report for June is scheduled for release on July 2.
