US May Jobs Report Adds 172,000 Jobs, Long‑Term Unemployment Near 2 Million

The United States added 172,000 jobs in May 2026, far exceeding the 80,000‑85,000 forecast, and the unemployment rate held steady at 4.3%. Despite the headline strength, the number of workers unemployed for 27 weeks or more rose by 155,000 to almost 2 million, the highest level since December 2021 and representing about 27.5% of the total unemployed.

The strong report sparked a market sell‑off, with the Nasdaq Composite falling roughly 4% and the perceived probability of a Federal Reserve rate hike by the end of 2026 climbing to around 70%, up from about 50% before the data. Analysts highlighted that most of the job gains came from government‑linked sectors, while wages grew only 3.4% year‑over‑year and real earnings continued to lag behind inflation.

Economists warned that the surge in long‑term unemployment signals a labor market where the longer a person stays job‑less, the harder it becomes to find work, especially as job openings have declined from pandemic peaks. The trend raises concerns about future hiring prospects and the effectiveness of monetary policy in a still‑tight labor environment.