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The US economy added jobs at a modest pace in May amid uncertainty surrounding the impact of conflicts in the Middle East on the labor market.
What are the key results of the May 2026 jobs report?
The Bureau of Labor Statistics on Friday reported that employers added 172,000 jobs in May. That number is higher than the estimates of economists consulted by LSEG, which predicted a gain of 85,000 jobs.
I unemployment rate It held steady at 4.3%, which was in line with the expectations of LSEG economists.
US economic activity growth in May exceeded economists’ expectations. (Chet Strange/Bloomberg via Getty Images)
The payroll numbers for the past two months were revised, with March revised up by 29,000 from a gain of 185,000 to 214,000; while the April report was revised 64,000 from a gain of 115,000 to 179,000.
Combined, hiring in March and April was 93,000 jobs more than previously reported.
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Which sectors added or lost the most jobs in May 2026?
Private payrolls added 120,000 jobs in May, above the LSEG survey forecast of 85,000 jobs. April’s gain of 123,000 jobs was revised up to 177,000, while March’s gain of 190,000 jobs was revised up to 202,000.
Government payroll increased by 52,000 jobs in May. Local government had the biggest gain, adding 55,000 jobs per month compared to 1,000 jobs added by the federal government. Those gains were partially offset by a decrease of 4,000 jobs in state government.
The manufacturing sector added 7,000 jobs in May, more than the 2,000 job gain expected by LSEG economists.
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Health care added 35,200 jobs in May, roughly in line with the average monthly gain of 38,000 jobs over the past 12 months. Most of those gains occurred in emergency health care services (+25,700) and hospitals (+6,000).
Public assistance added 12,000 jobs in May, mostly in individual and family services (+9,600). The sector added 17,000 jobs per month over the past year.
The financial sector shed 22,000 jobs in May and the sector is down 107,000 jobs from its most recent peak in May 2025. Most of the job losses occurred in insurance carriers (-10,700) and commercial banks (-2,600).
The manufacturing sector added more jobs than expected in May. (Emily Elconin/Bloomberg via Getty Images)
What does the May 2026 jobs report mean for workers?
The number of long-term unemployed, defined as those who have been out of work for 27 weeks or more, was little changed in the month at 2 million but increased by 524,000 this year. The long-term unemployed accounted for 27.5% of all unemployed people in May.
The number of people employed part-time for economic reasons remained unchanged at 4.8 million in May. These people would like to be employed full-time but are working part-time because their hours have been reduced, or they have not been able to find full-time jobs.
The labor force participation rate remained strong at 61.8% in May, while the employment rate was little changed at 59.2%. Both measures were slightly revised last year after accounting for population control adjustments.
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What the experts are saying about the May 2026 jobs report
Lindsay Rosner, head of diversified investments at Goldman Sachs Asset Management, called the May jobs report a “Payroll Blowout!” and added, “We have gained more confidence in the last notes that the Fed need not worry about the labor market. Laser focused on the money supply and it will all come down during this fight to determine the Fed’s next move. For now, the move is inconsistent: HOLD.”
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Seema Shah, chief global strategist at Principal Asset Management, said the jobs report “reinforces that there is no basis for easing the Fed’s bias.”
“Job creation of more than 150,000 – comfortably exceeding the Fed’s cut rate and broad base in nature – comes alongside inflation that remains above target and is expected to rise sharply in the coming months. In fact, both sides of the Fed’s dual mandate are opposed to tapering at this stage,” Shah said.
