U.S. Jobs Report Shows 172,000 Gain in May

The U.S. economy added 172,000 jobs in May, exceeding forecasts, while the unemployment rate held steady at 4.3 percent. The Trump administration also raised its estimates for March and April employment. First-quarter GDP growth remained at 1.6 percent.

Food services and drinking places added 48,000 jobs during the month, the Bureau of Labor Statistics said. Employment showed little change in construction, manufacturing, wholesale trade, retail trade, information, professional and business services, and other services.

Tariffs and higher energy prices linked to the conflict in Iran have increased costs for raw materials, oil, gas, diesel, steel, and aluminum. Treasury Secretary Scott Bessent testified before the Senate this week on manufacturing conditions. Oxford Economics stated in a June 5 note that the payroll gains and prior-month revisions allow the Federal Reserve to maintain current policy while focusing on inflation.