Employers added 172,000 jobs last month as US job market shows resilience

The American job market continues to show surprising strength, shrugging off the high costs of the Iran war.

Employers added 172,000 jobs in May—roughly double what forecasters had expected—and the unemployment rate remained at a low 4.3%.

The Labor Department reported Friday that job growth was down slightly last month from a revised 179,000 in April. The unemployment rate stayed at a low 4.3%.

Hiring has bounced back this year from a miserable 2025, showing resilience in the face of economic uncertainty and painfully high energy prices caused by the Iran war.

The job gains last month were broad-based. Local governments added 55,000 workers, restaurants and bars 48,000, healthcare companies 35,000.

In another sign of job market strength, Labor Department revisions added a combined 93,000 jobs in March and April. Job growth averaged 188,000 a month from March through May, marking the best three months of hiring since early 2024.

“The hiring recession is over. American firms are hiring again,’’ said Heather Long, chief economist at Navy Federal Credit Union. “The job rebound is happening in almost every industry. … This is encouraging news for job seekers and for the U.S. economy. The labor market has stabilized and is showing early signs of a genuine rebound.’’

Despite the pickup in hiring, wage gains were modest, which could reassure the inflation fighters at the Federal Reserve. Average hourly wages rose 0.3% from April and 3.4% from May 2025, consistent with the Fed’s 2% inflation target.

Financial markets retreated after the report came in, likely reflecting expectations that the Fed won’t see a need to cut interest rates this year because hiring is so healthy.

The Associated Press has the full story.