May Jobs Report: U.S. Adds 172,000 Jobs

In May 2026, the U.S. economy added 172,000 nonfarm payroll jobs, reflecting a modest acceleration in hiring compared to April.

Revisions to prior months were positive overall. March’s total was revised up to +214,000, while April was revised up to +179,000, bringing combined employment 93,000 higher than previously reported.

The unemployment rate remained unchanged at 4.3%, with 7.3 million Americans unemployed, according to the U.S. Bureau of Labor Statistics.

Is the U.S. Job Market Growing?

May’s job gains suggest the labor market remains resilient, with hiring continuing across several key industries.

Leisure and hospitality led employment growth, supported by strong hiring in restaurants and bars. Local government and healthcare also posted solid gains, while financial activities continued to face headwinds.

Although hiring remains positive, the labor market continues to show signs of moderation compared to the stronger pace seen earlier in the recovery. Unemployment remains low, and labor force participation held steady.

U.S. Unemployment Rates by Group – May 2026

• Adult women: 3.8%
• Adult men: 4.0%
• Teenagers: 14.7%
• Whites: 3.8%
• Blacks: 6.6%
• Asians: 3.8%
• Hispanics: 5.0%

Unemployment rates across major demographic groups showed little change in May. The unemployment rate for Black workers declined, while rates for other groups remained relatively stable.

Key Employment Statistics for May 2026

• Long-term unemployed (27 weeks or more): 2.0 million, representing 27.5% of all unemployed, little changed over the month but up over the year.
• Short-term unemployed (less than 5 weeks): Decreased by 286,000 to 2.2 million.
• Average hourly earnings: Rose by 12 cents to $37.53, up 3.4% over the past year. Production and nonsupervisory employees earned $32.31, up 8 cents.
• Average workweek: Held steady at 34.3 hours. Manufacturing hours remained at 40.4 hours, while production and nonsupervisory employees remained at 33.8 hours.
• Labor force participation rate: 61.8%
• Employment-population ratio: 59.2%

The number of workers employed part time for economic reasons was little changed at 4.8 million, indicating stable levels of underemployment.

Sectors with Notable Job Trends in May

Leisure and Hospitality

Leisure and hospitality added 70,000 jobs in May, significantly outpacing its average monthly growth over the past year.

Most of the gains came from food services and drinking places, which added 48,000 jobs. The sector benefited from increased seasonal hiring and continued consumer spending on travel and dining.

Local Government

Employment in local government increased by 55,000 jobs in May.

Much of the growth occurred outside of education-related roles, reflecting ongoing staffing needs in municipal services and public administration.

Healthcare

Healthcare added 35,000 jobs in May, continuing its steady upward trend.

Gains were strongest in ambulatory health care services (+26,000), including home health care services (+11,000). Employment in hospitals also continued to increase.

Financial Activities

Financial activities lost 22,000 jobs in May and have declined by 107,000 since peaking in May 2025.

Losses were concentrated in insurance carriers and related activities, as well as commercial banking, highlighting continued restructuring within the sector.

May Jobs Report Summary

The May 2026 jobs report showed stronger hiring than the previous month, with payroll employment increasing by 172,000.

Leisure and hospitality, local government, and healthcare led job gains, while financial activities experienced continued declines.

Unemployment remained steady at 4.3%, wage growth moderated slightly to 3.4% year over year, and average hours worked were unchanged.

Overall, the labor market remains stable and continues to add jobs, though growth is concentrated in a handful of sectors while others continue to adjust to changing economic conditions.

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