New Delhi [India], June 5 (ANI): US employers added 172,000 jobs in May while the unemployment rate held steady at 4.3 per cent, indicating continued resilience in the world’s largest economy despite signs of slowing growth.
According to the US Bureau of Labor Statistics (BLS), “Total nonfarm payroll employment increased by 172,000 in May, and the unemployment rate was unchanged at 4.3 per cent.”
However, the release noted that hiring remained concentrated in a few sectors. “Job gains occurred in leisure and hospitality, local government, and health care. Employment in financial activities declined,” the BLS said.
The labour market indicators from the household survey showed little change during the month. The BLS said, “The unemployment rate held at 4.3 per cent and has remained in a narrow range of 4.3 per cent to 4.5 per cent since July 2025.” The number of unemployed people, at 7.3 million, changed little over the month.
The labour force participation rate also remained stable. According to the report, “The labor force participation rate held at 61.8 per cent in May, and the employment-population ratio changed little at 59.2 per cent.”
Among sectors, leisure and hospitality emerged as the biggest job creator, adding 70,000 positions during the month. The BLS said the increase was “well above the average monthly gain of 14,000 over the prior 12 months.” Food services and drinking places alone added 48,000 jobs over the month.
Employment in local government rose by 55,000, largely reflecting a gain in local government, excluding the education segment. Health care added 35,000 jobs in May, in line with recent trends. The report noted that “ambulatory health care services added 26,000 jobs,” while employment in hospitals continued to rise.
However, some sectors continued to face pressure. “Financial activities employment declined by 22,000 in May and is down by 107,000 since a recent peak in May 2025,” the report said. Job losses were recorded in insurance carriers and related activities as well as commercial banking.
The report also highlighted a rise in long-term unemployment over the past year. While the number of people unemployed for 27 weeks or more was little changed in May at 2 million, it was “up by 524,000 over the year.” Long-term unemployed persons accounted for 27.5 per cent of all unemployed people during the month.
Wage growth remained moderate. The BLS said, “Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.3 per cent, to USD 37.53.” Over the past 12 months, average hourly earnings increased by 3.4 per cent.
The report also showed that previous employment estimates were revised higher. The BLS said the March payroll gain was revised up by 29,000 to 214,000, while April’s figure was revised up by 64,000 to 179,000. “With these revisions, employment in March and April combined is 93,000 higher than previously reported,” the agency said. (ANI)
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