Jobs report May 2026:

Job growth rose unexpectedly in May as the U.S. labor market continued a solid year of expansion, according to Friday’s report from the Bureau of Labor Statistics.

Nonfarm employment rose to a seasonally adjusted 172,000 during this period; That was down slightly from April’s upwardly revised 179,000 and well above Dow Jones’ consensus estimate of 80,000. The unemployment rate remained stable at 4.3%, as expected.

The report comes against a backdrop of muted expectations as employers hold their ground amid low hiring and low fever. Although employment gains were largely concentrated in just a few sectors, layoffs were also modest; But there are some signs that AI is having an impact on the workforce.

In recent days, Federal Reserve officials have taken a more optimistic tone about the employment picture, turning their attention to the nagging problem of inflation, which has largely taken the possibility of additional interest rate cuts off the table. The central bank had been trending toward holding this year after cutting benchmark interest rates by three-quarters of a percentage point in the second half of 2025.

Fed policymakers have largely stuck to a narrative of waiting to see how developments play out this year before deciding on a policy path.

Economic growth overall has been solid, with gross domestic product growing at an annualized rate of 1.6% in the first quarter and a 3% increase in the second quarter so far, according to the Atlanta Fed.

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