WASHINGTON — U.S. employers added 172,000 jobs in May, marking the third consecutive month of solid payroll gains, while the unemployment rate held steady at 4.3 percent, the Labor Department reported on Friday.
The Bureau of Labor Statistics said job gains occurred in leisure and hospitality, local government and health care, though employment in financial activities declined. The May figure exceeded economists’ expectations and followed upward revisions to prior months’ data.
March payrolls were revised up by 29,000 to 214,000, and April was revised up by 64,000 to 179,000, bringing the three-month average to about 188,000. The unemployment rate remained unchanged for the third straight month.
Average hourly earnings rose 0.3 percent in May and 3.4 percent from a year earlier, in line with expectations. The labor force participation rate and other measures showed mixed signals, with some indicators of long-term unemployment rising.
The report comes as the Federal Reserve monitors labor market conditions amid other economic pressures. Economists have noted that the breakeven rate for job growth to hold the unemployment rate steady has declined in recent years.
A Labor Department spokesperson said the data reflect continued resilience in the labor market. “Job gains in key service sectors contributed to the overall increase,” the spokesperson added.
The figures provide a snapshot of the world’s largest economy as it navigates post-pandemic adjustments and sector-specific shifts. Private-sector payrolls increased by 120,000 in May.
Some analysts pointed to underlying trends, including a rise in the share of long-term unemployed. Details on impacts across different demographics and industries remain subject to further analysis in coming reports.
As of Tuesday, markets and policymakers continued to review the implications of the May data. The next employment report for June is scheduled for release in early July.
