Key facts
- US employers added 172,000 jobs in May.
- The unemployment rate remained at 4.3% in May.
- Job growth was down slightly from a revised 179,000 in April.
- Average hourly wages rose 0.3% from April and 3.4% from May 2025.
- Healthcare companies drove much of the hiring over the past year.
The U.S. labor market showed resilience in May, with employers adding 172,000 jobs, a slight decrease from April's revised 179,000. The unemployment rate held steady at 4.3%. Job gains were broad-based, with significant contributions from local governments, restaurants, bars, and healthcare companies. Wage growth remained modest, with average hourly wages increasing 0.3% from April and 3.4% year-over-year, which could support the Federal Reserve's efforts to manage inflation. The report suggests a stabilization and potential rebound in the labor market, with monthly job gains exceeding 100,000 for three consecutive months. However, challenges persist for some job seekers, particularly young people and those laid off, with a notable increase in long-term unemployment and a reluctance among workers to quit their jobs. The impact of President Trump's 2025 tax cuts is cited as a factor boosting the economy, while high energy prices persist. Healthcare continues to be a strong hiring sector, with explanations ranging from an aging population to potential impacts of immigration policy. Some analysts express concern about AI's future impact on entry-level jobs, though current adoption is seen as gradual and productivity-enhancing rather than leading to widespread layoffs. The rise of remote work is also identified as a factor making it harder for new graduates to secure entry-level positions.