U.S. payrolls rose 172,000 in May, beating forecasts

Nonfarm payrolls rose a seasonally adjusted 172,000 in May, well above the 80,000 gain that analysts had projected. The unemployment rate remained unchanged at 4.3 percent. The Bureau of Labor Statistics reported the data Friday. April payrolls were revised upward by 64,000 to 179,000, and March was lifted by 29,000 to 214,000.

Sector breakdown and wage trends Leisure and hospitality added 70,000 jobs, far above its recent monthly average. Health care contributed 35,000 positions, while social assistance added 12,000. Average hourly earnings increased 0.3 percent for the month and 3.4 percent over the past year, matching forecasts.

Broader labor market picture The household survey showed employment rising 149,000. The labor force participation rate stayed at 61.8 percent, and a broader unemployment measure that includes discouraged workers and part-time workers for economic reasons fell to 8.1 percent.

"This is a labor market that is stronger than it was last year and is looking pretty darn solid, despite high energy prices and higher inflation generally," said Gus Faucher, chief economist at PNC. "American firms are hiring again," said Heather Long, chief economist at Navy Federal Credit Union.