May non-farm payrolls rose 172K, exceeding the 85K estimate, while unemployment held steady amid mixed labor market signals.
US employers added 172K jobs in May, surpassing the 85K consensus forecast, as hiring remained resilient despite cooling trends. The unemployment rate stayed flat, reflecting a labor market in low-hire, low-fire mode with minimal layoffs but slowing growth.
Prior months saw revisions, with March payrolls upgraded to 185K and February adjusted to a 156K decline. April’s gain of 115K nearly doubled expectations, driven by health care, transportation, and retail sectors. Wage growth and hours worked data were mixed, with average hourly earnings slightly below forecasts.
Markets continue to price a near-certain hold on the Fed’s 3.50-3.75% benchmark rate, as policymakers weigh labor stability against inflation pressures.