U.S. Employment Jumps by 172,000 in May, Much More Than Expected

U.S. nonfarm payrolls surged by 172,000 in May, the Labor Department reported on June 5, 2026, handily beating economists' forecast of 150,000. The stronger-than-expected gain signals the labor market is cooling only gradually, sustaining upward pressure on wages and inflation. The unemployment rate dipped to 3.8% from 3.9%, while average hourly earnings climbed 0.3% month-over-month. Sectors such as healthcare, leisure and hospitality, and professional services led job creation. The data blunts expectations for imminent Federal Reserve rate cuts, as policymakers await clearer signs of economic softening. Treasury yields rose and stock futures pared gains following the release.