America’s labor market delivered another surprise in May as employers added far more jobs than expected, giving the Federal Reserve another reason to hold off on cutting interest rates.
US employers added 172,000 jobs last month while the unemployment rate held steady at 4.3%, according to Labor Department data released Friday.
The payroll gain easily topped economists’ expectations for roughly 80,000 new jobs and came after the government revised March and April hiring figures higher by a combined 93,000 jobs.
President Trump appeared to tie the numbers to his long-standing calls for interest rate cuts.
“With a great Jobs Report, like just announced, stocks should go up, not down. That’s the way it was for 200 years. Growth does not mean inflation! How else can a Country attain GREATNESS???” he wrote on his social media platform Truth Social.
Stocks were down, though, as investors appeared to expect the Federal Reserve to stick to its wait-and-see approach on interest rates.
The Dow had dropped 80 points, or 0.2% as of 10:40 p.m. ET, while the Nasdaq and S&P 500 were down 1.75% and 1%, respectively.
The stronger-than-expected report suggests the labor market remains remarkably resilient despite concerns about slowing economic growth and uncertainty facing businesses.
Job gains were concentrated in leisure and hospitality, which added 70,000 positions in May. Local government added 55,000 jobs, while health care payrolls increased by 35,000.
Financial activities was one of the few weak spots, shedding 22,000 jobs during the month.
Average hourly earnings rose 0.3% in May and were up 3.4% from a year earlier, matching economists’ expectations.
The unemployment rate has now remained in a narrow range between 4.3% and 4.5% since July 2025, according to the Bureau of Labor Statistics.
The report arrived just days after separate Labor Department data showed job openings climbed to 7.62 million in April, the highest level since May 2024 and a sign that demand for workers remains intact even as hiring has slowed.
The increase in openings was driven overwhelmingly by professional and business services, a broad category that includes many white-collar jobs. Openings in the sector jumped by 668,000 positions in April, accounting for roughly 90% of the nationwide increase.
But the April surge in job openings has yet to translate into a major hiring boom.
While employers posted more jobs, Labor Department data showed employment in professional and business services was little changed in May, suggesting companies may be searching for talent while remaining cautious about expanding payrolls.