May Hiring Keeps the Job-Growth Streak Alive as Revisions Lift Past Months

U.S. employers added 172,000 jobs in May, with the unemployment rate steady at 4.3% and March and April payrolls revised higher, signaling a still-strong labor market. Growth was led by leisure and hospitality, local government, and healthcare, and wage gains slowed relative to inflation at 3.4% year over year. The stronger-than-expected May data, plus revisions, suggests the labor market may be emerging from a period of stagnation, complicating expectations for Fed rate cuts and fueling talk of higher-rate odds later in the year. Analysts and officials welcomed the gains despite inflation pressures, noting confidence returning to employers and activity in hiring.