US Nonfarm Payroll Increases by 172,000 in May; Unemployment at 4.3%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment rose by 172,000 in May, following revised gains of 179,000 in April and 214,000 in March.

The unemployment rate held at 4.3%, with 7.3 million people unemployed. Both measures changed little.

Growth was led by the following sectors:

• Leisure and hospitality added 70,000 jobs, well above the 12-month average of 14,000.
• Local government employment rose by 55,000 jobs.
• Health care added 35,000 jobs, in line with the 12-month average of 38,000.
• Social assistance continued to trend upward, adding 12,000 jobs. Over the prior 12 months, social assistance added an average of 17,000 jobs per month.

Job losses were concentrated in financial activities, which fell by 22,000. Since peaking in May 2025, financial activities employment has declined by 107,000.

Employment showed little change over the month in other major industries, including construction, manufacturing, wholesale trade, retail trade, information, professional and business services, and other services.

Monthly Revisions

Revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

The change in total nonfarm payroll employment for March was revised up by 29,000, from 185,000 to 214,000, and the change for April was revised up by 64,000, from 115,000 to 179,000. With these revisions, employment in March and April combined is 93,000 higher than previously reported.