U.S. job growth rose sharply in May, beating market expectations, while the unemployment rate remained stable, government data showed on Friday, as the labor market in the world’s largest economy maintained its recent gains.
The U.S. Bureau of Labor Statistics said: “Nonfarm payroll employment increased by 172,000 in May, and the unemployment rate remained unchanged at 4.3%.”
Economists surveyed Dow Jones news agencies and wall street The Wall Street Journal had forecast job gains of 80,000.
Data released on Friday also revised up job growth figures for March and April by 93,000, a sign that the labor market may be emerging from recent turmoil.
employment growth USA The economy has swung between expansion and contraction month after month since last year, but May’s data marked the third straight month of growth.
New data shows the leisure and hospitality industry added 70,000 jobs last month, well above last year’s monthly average of 14,000.
The health care industry remains one of the strongest performers in the labor market, with 35,000 new jobs added in May, in line with the 12-month average.
However, employment in the financial activities sector fell by 22,000, with losses concentrated in the insurance and commercial banking sectors.
Employment in the industry is down by 107,000 from its recent peak in May 2025.
The air transport industry lost 9,000 jobs after low-cost carrier Spirit closed operations.
– Bond yields rise –
Affected by the data, U.S. Treasury bond yields rose, triggering market expectations for the Federal Reserve to raise interest rates.
The yield on the ten-year Treasury note rose from 4.47% to 4.53%, and the yield on the two-year Treasury note rose from 4.04% to 4.13%.
Central bank policymakers have been increasingly concerned about persistent above-target inflation in the U.S. economy amid President Donald Trump’s war with Iran.
With the labor market strengthening recently, they may be more inclined to focus on the inflation side of the Fed’s mandate.
The Fed has the dual mission of keeping inflation at its long-term goal of 2 percent while ensuring maximum employment.
Addressing inflation may require the Federal Reserve to raise interest rates to cool rising prices — a move that is sure to anger Trump.
The U.S. president launched an unprecedented attack on the Federal Reserve’s independence, demanding the central bank lower interest rates to boost economic activity.
New Fed Chairman Kevin Warsh will chair the first meeting of the Fed’s rate-setting committee later this month.
