Overview
- The Bureau of Labor Statistics reported Friday that payrolls rose by 172,000 in May while the unemployment rate held at 4.3 percent.
- March and April payrolls were revised up by a combined 93,000 jobs, raising the three-month average to about 188,000 hires.
- Hiring was concentrated in leisure and hospitality (+70,000), local government (+55,000) and health care (roughly +35,000) while financial activities fell.
- Average hourly earnings rose 3.4 percent year‑over‑year in May, a pace below recent inflation estimates and implying falling real wages for many workers.
- Markets cut back expectations for 2026 rate cuts, pushing stocks lower and Treasury yields higher, and analysts warned that persistent inflationary pressure from higher energy costs and elevated tech layoffs complicates the outlook for workers and policy.