WASHINGTON, D.C. — U.S. employers added 172,000 jobs in May while prior months’ payroll estimates were revised higher by a combined 93,000 positions, extending a run of steady hiring even as wage growth moderated and long-term unemployment remained elevated.
The May employment report from the U.S. Bureau of Labor Statistics showed nonfarm payroll growth exceeded economists’ expectations, with gains broadening beyond the sectors that have driven much of the labor market’s expansion over the past year.
The unemployment rate held at 4.3% for a third consecutive month, continuing a pattern that has remained largely unchanged since mid-2025.
Leisure and hospitality led hiring, adding 70,000 jobs, driven largely by restaurants and bars. Local government payrolls increased by 55,000 positions, while healthcare added 35,000 jobs.
Manufacturing employment continued to improve, with the sector adding to gains that have totaled 25,000 jobs since the start of 2026, according to Labor Department data cited by Acting Labor Secretary Keith Sonderling.
Construction payrolls have increased by 71,000 jobs since President Donald Trump took office, Sonderling said in a statement responding to the report.
The stronger headline figures were aided by upward revisions to March and April employment estimates, which together added 93,000 jobs to previously reported totals.
Despite the solid payroll growth, several indicators pointed to a labor market that remains resilient for employed workers but challenging for job seekers.
Labor force participation was unchanged at 61.8%, while the number of Americans unemployed for 27 weeks or longer remained at 2 million. Long-term unemployed workers accounted for 27.5% of all unemployed individuals in May.
The financial activities sector continued to weaken, shedding 22,000 jobs during the month and leaving employment in the industry more than 100,000 positions below its 2025 peak.
Wage growth also continued to cool. Average hourly earnings rose 12 cents, or 0.3%, to $37.53 in May. On a year-over-year basis, wages increased 3.4%.
“The May Jobs Report overperformed on every level,” Sonderling said, pointing to gains in manufacturing, construction and private-sector employment as evidence of the administration’s labor market policies.
The report suggests the U.S. labor market remains stable despite slower wage growth and persistent challenges for unemployed workers, with employers continuing to add jobs while layoffs remain historically low. Economists often describe such conditions as a “low-hire, low-fire” environment, where workers who have jobs tend to keep them, but those seeking employment face longer searches.
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