U.S. adds 172,000 jobs in May, unemployment holds at 4.3%

The U.S. economy added a robust 172,000 jobs in May, far exceeding economists' forecasts and signaling sustained strength in the labor market. The unemployment rate remained unchanged at 4.3%, according to data released by the Bureau of Labor Statistics.

Job gains were concentrated in a few key sectors. Leisure and hospitality led with 70,000 new positions, a figure well above its recent monthly average. Local government employment rose by 55,000, and the healthcare sector added 35,000 jobs. In contrast, financial activities lost 22,000 jobs, continuing a downward trend from a peak last year. Other major sectors, including construction, manufacturing, and retail trade, showed little change.

The report also included significant upward revisions to prior months. March job growth was revised up to 214,000 from 185,000, and April's figure was raised to 179,000 from 115,000. Combined, these revisions added 93,000 more jobs than previously reported for the two-month period.

Wage growth remained moderate. Average hourly earnings increased 0.3% for the month and were up 3.4% from a year earlier. Other labor market metrics were stable, with the labor force participation rate holding at 61.8%.