U.S. adds 172,000 jobs in May as 2026 hiring streak continues, government says

The U.S. added 172,000 jobs in May, the government said in a report that far exceeded expectations and continued a robust run of hiring after a sluggish 2025.

The Bureau of Labor Statistics said Friday the unemployment rate remained steady at 4.3%

“In May, job gains occurred in leisure and hospitality, local government and healthcare. Employment in financial activities declined,” the BLS said in its summary.

Healthcare continued its streak of strong hiring, adding 35,000 jobs, and social assistance was up 12,000. Mining, quarrying, and oil and gas extraction also saw increases.

Employment in financial activities was down 22,000 in May, while construction, manufacturing, wholesale trade, retail trade, information and professional and business services showed little change.

Wall Street had been expecting employers to add about 80,000 jobs and for the unemployment rate to hold steady.

“MASSIVE: The May Jobs Report SHATTERED expectations!” acting Labor Secretary Keith Sonderling said on social media.

Hiring was sluggish throughout 2025, as employers eased off a post-pandemic hiring frenzy and worried about factors such as new tariffs. The situation prompted the Federal Reserve to cut interest rates despite lingering inflation concerns.

Yet there have been signs of a rebound in 2026. The last two jobs reports averaged a monthly gain of 150,000 positions.

The report was a bright spot at a complex time for the economy.

The war in Iran is causing fluctuations in oil markets and a spike in gasoline prices.

Tehran clamped down on the Strait of Hormuz, a chokepoint for oil exports, as retaliation after the U.S. and Israel launched a military operation against Iran on Feb. 28.

The average U.S. gas price stood at $4.22 per gallon on Friday, down 17 cents from a week ago but up 42% from when the war began, according to the AAA motor club.

Heather Long, the chief economist at the Navy Federal Credit Union, said on social media that it is “easier to get a job now, but it's hard to find a job where your pay will keep up with current inflation.”

Even so, she said it looks like the “hiring recession” is over.

“Almost every industry is hiring again except tech and finance,” she wrote on X. “There are a lot of encouraging signs for the labor market heading into summer.”

The robust hiring streak could complicate decision-making at the Federal Reserve, where President Trump is banking on handpicked Chair Kevin Warsh to slash interest rates.

Strong hiring allows the Fed to focus on corralling inflation, and central bankers will be reluctant to cut rates.

Stocks were mixed after the opening bell on Friday, reflecting investors’ concerns that rates could stay flat or possibly rise.

Mr. Trump said the dynamic is frustrating.

"With a great Jobs Report, like just announced, stocks should go up, not down," he wrote Friday on Truth Social. "That’s the way it was for 200 years. Growth does not mean inflation! How else can a Country attain GREATNESS???"

Later, aboard Air Force One, Mr. Trump said he would let Mr. Warsh make his own decisions about interest rates. But the president was clear about where he stood.

“You save hundreds of millions of dollars when you take one point off,” Mr. Trump said.