WASHINGTON— The U.S. labor market delivered a stronger-than-expected performance in May, adding 172,000 nonfarm jobs while the unemployment rate held steady at 4.3%, according to the Employment Situation report from the Bureau of Labor Statistics released Friday.
Dr. Dawit Kebede
The payroll gain was more than double economists' consensus forecasts of roughly 80,000 to 85,000 jobs and suggests employers continue hiring despite concerns over inflation, geopolitical uncertainty and slowing economic growth.
The report also included significant upward revisions to prior months, with March and April payroll figures revised higher by a combined 93,000 jobs. Job gains were led by leisure and hospitality, local government and healthcare, while employment in financial activities declined. Average hourly earnings rose 0.3% during the month and were up 3.4% year over year, indicating wage growth remains positive but continues to trail inflation.
"May's jobs report came stronger than anticipated, and the upward revisions to March and April suggest the labor market may be moving past the softer hiring patch we saw earlier this year," said America's Credit Unions Senior Economist Dawit Kebede. "The trend over the last three months is encouraging. For the Federal Reserve, this data reinforces a patient posture. With the labor market holding up and inflation still above target, there is no urgency to cut rates. And if inflation continues to move in the wrong direction, the possibility of additional rate hikes cannot be ruled out entirely."