US May Jobs Report Adds 172,000, Unemployment Holds at 4.3%

The U.S. Bureau of Labor Statistics reported that non‑farm payrolls rose by 172,000 jobs in May, double economists' expectations and marking the strongest three‑month streak in more than two years. Unemployment stayed at 4.3% for a third consecutive month. Revisions added 93,000 jobs to March and 179,000 to April, reinforcing the upward trend.

Sector gains were led by local government (55,000 jobs), restaurants and bars (48,000), and healthcare (35,000). Manufacturing continued to shed jobs, offsetting some of the gains. Analysts noted that the ongoing Iran‑related energy shock is keeping gasoline prices high, but the labor market’s resilience is giving the Federal Reserve more leeway to consider a rate hike. Futures markets now price in roughly a 60‑65% chance of a 25‑basis‑point rate increase by December, up from earlier expectations.

The report bolsters the view that the labor market is stabilising, shifting the Fed’s focus toward inflation as it prepares for its June policy meeting.