172,000 jobs added in May, showing market resilience despite Iran war

By — Paul Wiseman, Associated Press Paul Wiseman, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/172000-jobs-added-in-may-showing-market-resilience-despite-iran-war Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter 172,000 jobs added in May, showing market resilience despite Iran war Economy Jun 5, 2026 10:01 AM EDT WASHINGTON (AP) — U.S. employers added a surprising 172,000 jobs in May as the labor market continued to show resilience in the face of rising costs from the Iran war. The Labor Department reported Friday that job growth was down slightly last month from a revised 179,000 in April. The unemployment rate stayed at a low 4.3% READ MORE: Older Americans say it's a good time to find a job. Younger people aren't buying it Hiring has bounced back this year from a miserable 2025, showing unexpected strength in the face of economic uncertainty and painfully high energy prices caused by the Iran war. Unemployment remained at a low 4.3% in May. Educate your inbox Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. The job gains were broad-based. Local governments added 55,000 workers, restaurants and bars 48,000, healthcare companies 35,000. In another sign of job market strength, Labor Department revisions added a combined 93,000 jobs in March and April. Monthly job gains have now topped 100,000 for three straight months. WATCH: What a stronger than expected jobs report tells us about the state of the economy "The hiring recession is over. American firms are hiring again," said Heather Long, chief economist at Navy Federal Credit Union. The job rebound is happening in almost every industry ... This is encouraging news for job seekers and for the U.S. economy. The labor market has stabilized and is showing early signs of a genuine rebound." Despite the pickup in hiring, wage gains were modest, which could reassure the inflation fighters at the Federal Reserve. Average hourly wages rose 0.3% from April and 3.4% from May 2025, consistent with the Fed's 2% inflation target. Financial markets retreated after the report came in, likely reflecting expectations that the Fed won't see a need to cut interest rates this year because hiring is so healthy. Workers, jobseekers and employers have been stuck in an awkward "no-hire, no-fire" labor market. "Those who have jobs are clinging to them, while those without are left wanting," Diane Swonk, chief economist at the tax and consulting firm KPMG, wrote in a commentary ahead of the jobs report. "The result is a sense of being frozen or left in a sort of labor market purgatory." WATCH: How worried should Americans be as AI threatens jobs? Many young people are finding it tough to break into a stagnant job market. And workers who have been laid off struggle to get back to work. More than a quarter of the unemployed in April had been jobless for more than six months, up from less than 20% tw