WASHINGTON — U.S. employers added 172,000 jobs in May, marking the third consecutive month of solid gains, while the unemployment rate held steady at 4.3 percent, the Labor Department reported on Friday.
The figure exceeded economists' expectations and came after upward revisions to hiring in March and April, the department's Bureau of Labor Statistics said. Job gains occurred in leisure and hospitality, local government and health care, while employment in financial activities declined.
Over the past three months, employers have added an average of about 188,000 jobs per month, according to the data. The unemployment rate has remained at 4.3 percent for three straight months.
Average hourly earnings rose 0.3 percent in May and were up 3.4 percent from a year earlier, in line with recent trends, the report showed.
The stronger-than-expected report comes amid ongoing inflation pressures and follows the Federal Reserve's recent leadership transition to new Chair Kevin Warsh. Markets had been pricing in the possibility of interest rate adjustments in response to the data.
President Donald Trump welcomed the figures. “With a great Jobs Report, like just announced, stocks should go up, not down,” he wrote on Truth Social. “Growth does not mean inflation! How else can a Country attain GREATNESS???”
The Labor Department noted that job gains in prior months were revised higher by a combined 93,000. March and April payroll figures were adjusted upward, reflecting continued momentum in the labor market after a period of slower growth last year.
Economists pointed to resilience in sectors such as restaurants, bars and hotels as contributing to the gains. However, some measures indicated underlying caution among businesses, with hiring rates remaining subdued in certain areas.
The report provides fresh data as policymakers monitor the balance between employment strength and price pressures. The Federal Open Market Committee is scheduled to meet next week.
Details on wage growth relative to inflation and sector-specific breakdowns remain subject to further analysis in coming reports. The Bureau of Labor Statistics releases the employment situation report on a monthly basis.
