Job Growth Report for May 2026

The Bureau of Labor Statistics recently released a report indicating that 172,000 jobs were added in May 2026. This figure significantly surpassed the expectations of economists from LSEG, who had predicted an addition of just 85,000 jobs.

This strong performance in employment follows two previous months of notable job growth. Additionally, the Labor Department revised its earlier forecasts, increasing March’s job additions from 185,000 to 214,000—an upward adjustment of 29,000. April’s numbers saw a similar revision, now standing at 179,000 instead of 115,000, an increase of 64,000.

“President Trump and this administration have once again produced the best month of job creation since taking office, defying economists’ expectations,” stated Acting Labor Secretary Keith Sonderling. “This administration is proving the cynics wrong, and American workers, families, and businesses are winning.”

The leisure and hospitality sector led the charge, contributing 70,000 jobs—far exceeding the average increase of 14,000 seen in the past year. The local government sector also expanded, adding 55,000 jobs. In contrast, the health care sector grew by just 35,000 jobs in May, reflecting a slowdown in what has typically been a strong growth area.

Other sectors showed some positive movement as well; manufacturing added 7,000 jobs, slightly surpassing the 2,000 forecast, and social assistance gained 12,000 positions.

Interestingly, the job market continued expanding despite rising prices related to ongoing conflicts in Iran, with inflation hitting its highest rate in three years, influenced by potential disruptions to global energy supplies.

Seema Shah, the chief global strategist at Principal Asset Management, commented on the implications of the report, stating it “confirms that there is little basis for the Fed’s easing bias.”

“While the creation of more than 150,000 jobs is very comfortably above the Fed’s breakeven estimate and is broad-based in nature, inflation also remains above target and is expected to trend upward in the coming months. In effect, both sides of the Fed’s dual mandate oppose cutting rates at this stage,” Shah elaborated.

“Under the President’s leadership, American workers are realizing real-time benefits such as higher wages, increased affordability, and more than 903,000 private-sector jobs,” Sonderling emphasized. “The Department of Labor remains committed to advancing bold, pro-worker policies and continuing to serve the American people.”