Job growth exceeded expectations in May, with strong hiring in the leisure and hospitality, local government, and healthcare sectors driving employment gains.
Nonfarm payrolls increased by a seasonally adjusted 172,000 jobs in May, according to the U.S. Bureau of Labor Statistics’ (BLS) June 5, 2026, Employment Situation Report. The total far exceeded economists’ expectations of 80,000 new jobs, while the unemployment rate held steady at 4.3%, even as employment in financial activities declined, per CNBC.
“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, PNC Bank’s chief economist, according to CNBC. “There’s no indication that the labor market needs support.”
Leisure and hospitality experienced the strongest job growth, adding 70,000 positions — significantly above its average monthly gain over the past year, per BLS’ report. The increase could be due to hiring for the World Cup, CNBC noted. Local government employment, excluding education, also increased substantially, adding 55,000 new jobs.
Healthcare continued to be a major contributor to employment growth, adding 35,000 jobs, while social assistance employment rose by 12,000.
Average hourly earnings rose 0.3% in the month and 3.4% year over year. Upward revisions to previous months’ reports further reinforced the positive employment outlook and signaled continued labor market strength. April’s job gains were revised higher by 64,000, while March’s total increased by 29,000 to 214,000 jobs.
Additional labor market indicators remained positive. The number of employed individuals increased by 149,000, labor force participation held steady at 61.8%, and a broader measure of unemployment — which includes discouraged workers and those working part-time for economic reasons — declined slightly to 8.1%.
Trump Administration Responds To May Jobs Report
Following the release of the May 2026 Employment Situation Report, Acting Secretary of Labor Keith Sonderling highlighted the results, stating that the report exceeded expectations and reflected the Trump administration’s economic priorities.
“President [Donald] Trump and this Administration once again produced the best month of job creation since taking office, demolishing economists’ expectations. This Administration is proving the cynics wrong, and American workers, families, and businesses are winning,” Sonderling said in a statement.
“Under the President’s leadership, American workers are seeing benefits in real time: rising wages, increased affordability, and over 903,000 private sector jobs added,” he continued. “The Department of Labor remains committed to advancing a bold, pro-worker agenda and will continue delivering for the American people.”
Changes To BLS Leadership
The report comes less than a year after leadership changes at the BLS. In August 2025, President Donald Trump replaced then-BLS Commissioner Erika McEntarfer with William J. Wiatrowski following weaker than expected employment reports, according to CNBC. At the time, Trump alleged that McEntarfer had manipulated employment data for political reasons.
“We need accurate Jobs Numbers,” Trump wrote on Truth Social. “I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can’t be manipulated for political purposes.”
