U.S. May Job Report Shows 172,000 New Jobs, Unemployment Steady at 4.3%

The U.S. Bureau of Labor Statistics reported that total non‑farm payroll employment rose by 172,000 jobs in May 2026, well above the 80,000‑90,000 range forecast by economists. The unemployment rate held at 4.3%, keeping the labor market tight.

Revisions added 29,000 jobs to March and 64,000 to April, meaning those two months together reported 93,000 more jobs than originally released. Job gains were led by leisure and hospitality (+70,000, including 48,000 in food services and drinking places), local government (+55,000, with 44,000 in non‑education roles) and health care (+35,000). Social assistance added 12,000 jobs, while mining, quarrying and oil‑and‑gas extraction rose by 5,000.

Employment fell in financial activities by 22,000, and air transportation lost 9,000 jobs after Spirit Airlines closed a unit. Other sectors such as construction, manufacturing and professional services showed little change. Analysts view the robust hiring as a sign that the U.S. economy is avoiding an immediate recession and provides a favorable backdrop for the Federal Open Market Committee’s June policy meeting.