US May payrolls surge 172,000, unemployment steadies at 4.3%

The U.S. Labor Department reported that non‑farm employment grew by 172,000 jobs in May, far exceeding the Dow Jones estimate of 80,000 and keeping the unemployment rate unchanged at 4.3%. The biggest gains came in leisure and hospitality (+70,000), local government (+55,000), health care (+35,000) and social assistance (+12,000). Average hourly earnings rose 0.3% on the month and 3.4% year‑over‑year.

Economists cited the report as evidence of a resilient labor market despite geopolitical tension in the Middle East and rising energy prices. Forecasts had expected 85,000 new jobs, with a “slow‑hire, slow‑fire” outlook and unemployment projected to hold steady. The data supports the Federal Reserve’s decision to keep interest rates unchanged while monitoring inflation pressures.