The U.S. economy added 172,000 jobs in May, more than double what analysts had predicted. The Bureau of Labor Statistics released the figures Friday morning, showing nonfarm payrolls far exceeded the Dow Jones consensus estimate of 80,000. The unemployment rate held at 4.3%.
According to a report by CNBC, the figure came in just below April's upwardly revised total of 179,000. Revisions painted an even stronger picture of recent months. April's number was revised up by 64,000, while March was revised up 29,000 to 214,000.
Leisure and hospitality led all sectors, adding 70,000 jobs. That was well above the sector's average of 14,000 per month over the past year. Local government added 55,000. Health care contributed 35,000 new hires, roughly in line with its recent average, while social assistance added 12,000.
Average hourly earnings rose 0.3% for the month and were up 3.4% from a year ago. Both figures matched Wall Street expectations.
"This is a labor market that is stronger than it was last year and is looking pretty darn solid, despite high energy prices and higher inflation generally," said Gus Faucher, chief economist at PNC. "There's no indication that the labor market needs support."
The household survey, which is used to calculate the unemployment rate, showed the number of employed people rising by 149,000. The labor force participation rate held steady at 61.8%. A broader measure of unemployment that includes discouraged workers and those in part-time jobs for economic reasons edged lower to 8.1%.
The report came against a backdrop of muted expectations. Employers have been operating in what analysts have described as a low-hire, low-fire environment, with job gains concentrated in a few sectors. Some signs have emerged that artificial intelligence is beginning to affect labor rolls, though layoffs have remained moderate.
"The hiring recession is over. American firms are hiring again," said Heather Long, chief economist at Navy Federal Credit Union. "This is a strong jobs report from every angle."
Stock market futures moved mostly negative after the release. Treasury yields climbed sharply higher. The strong numbers are expected to keep the Federal Reserve on hold.
"More solid jobs data leaves the Fed where it's been for a while — watching and waiting, focused on the inflation side of its mandate," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. "Rate cuts still aren't on the near-term horizon, but the absence of inflationary threats in today's report sho"
The May report arrived with some political context as well. Last summer, President Donald Trump fired the BLS commissioner after expressing anger over weak jobs numbers and downward revisions. William J. Wiatrowski was installed as acting chief.
