US Job Growth Continues as Unemployment Holds Steady in May

The US labor market remained stable in May, with nonfarm payroll employment increasing by 172,000 jobs and the unemployment rate holding steady at 4.3 percent. Employment growth was similar to April’s revised gain of 179,000 jobs, while the number of unemployed people remained largely unchanged at 7.3 million.

Job gains were concentrated in leisure and hospitality, local government, and health care, according to the US Bureau of Labor Statistics. Leisure and hospitality added 70,000 jobs, while local government and health care added 55,000 and 35,000 jobs, respectively. In contrast, financial activities lost 22,000 jobs, with declines in insurance and banking.

Labor force participation remained at 61.8 percent, and the employment-population ratio held at 59.2 percent. Long-term unemployment stayed at 2.0 million but was higher than a year ago, suggesting some workers are taking longer to find jobs. Average hourly earnings rose 0.3 percent in May and were up 3.4 percent over the year.

The report reflects continued job growth and a stable labor market, though hiring remains concentrated in a few sectors, and signs of gradual cooling, such as rising long-term unemployment, are beginning to emerge.