U.S. employers added 172,000 nonfarm payrolls in May, more than doubling expectations according to the Bureau of Labor Statistics. This growth topped all forecasts and suggests the labor market may be breaking out of a prolonged period of lackluster hiring.
The world's largest economy is showing signs of firming after months of turbulence. While the labor market had been growing at a stable but slower pace in 2026, May's gains were far stronger than expected, marking the third consecutive month of job additions.
The unemployment rate held steady at 4.3%. Despite these gains and a resilient labor market, wage growth softened and likely failed to keep pace with rising prices. The market continues to demonstrate strength even amidst growing inflation and concerns regarding slowing economic growth.