WASHINGTON, D.C. — U.S. employers added 172,000 jobs in May, and the national unemployment rate held at 4.3%, according to the Labor Department's monthly employment report. Average hourly wages rose 3.4% in May compared to May 2025.

The Labor Department's report indicated that local government employment increased by 55,000 jobs in May. The restaurant and bar sector gained 48,000 jobs, while the healthcare sector added 35,000 jobs. Healthcare sector job growth matches projections issued by the department ten years ago.

Monthly U.S. job gains exceeded 100,000 for three consecutive months ending in May. The Labor Department revised April job growth to 179,000 and added a net 93,000 jobs to its March and April estimates through statistical revisions. From January through May, U.S. employers added an average of 114,000 jobs per month, which contrasts with an average of 9,700 jobs per month throughout 2025.

Average hourly wages increased 0.3% in May compared to April. U.S. inflation rates reached their highest levels since April 2023. Financial market indices declined following the release of the May employment report. The number of U.S. workers who voluntarily left their jobs in April fell to its lowest monthly total since August 2020.

Heather Long, Chief Economist at Navy Federal Credit Union, said, "The hiring recession is over. American firms are hiring again." She added, "The job rebound is happening in almost every industry. The labor market has stabilized and is showing early signs of a genuine rebound."

Diane Swonk, Chief Economist at KPMG, said, "Those who have jobs are clinging to them, while those without are left wanting. The result is a sense of being frozen or left in a sort of labor market purgatory." In April, 25% of unemployed U.S. workers had been without a job for more than six months.

Gregory Daco, an Economist at EY-Parthenon, said, "AI adoption is proving more gradual and costly than many anticipated. Firms are increasingly using AI to enhance productivity and control labor costs." A Federal Reserve report estimated that the monthly job growth rate needed to keep the unemployment rate stable has decreased to near zero from approximately 155,000. Goldman Sachs reported that broader measures of labor market slack indicate weaker conditions in the U.S. jobs market than the headline unemployment rate suggests.