Employers added 172,000 jobs last month as US job market shows resilience despite Iran war

May hiring surged as the labor market defied high energy costs linked to the Iran war: employers added 172,000 jobs, the Labor Department said, roughly double forecasts, and the unemployment rate held at 4.3%. April’s revised gain was 179,000, keeping May on a strong trajectory. Over the first five months of the year, hiring averaged 188,000 a month, the best three-month stretch since early 2024. Sector gains were broad, with local governments adding 55,000 jobs, leisure and hospitality 48,000, and health care 35,000. Separately, revisions to March and April added a combined 93,000 jobs, underscoring durable momentum across the economy.

Analysts say the data indicate the end of the hiring lull and a broad rebound across industries, even as wage growth remains modest. Average hourly earnings rose 0.3% in May and were up 3.4% from May 2025. Inflation remains a concern as Americans face higher prices for gasoline, groceries, clothing and electricity, which complicates sentiment ahead of midterm elections. The job market’s resilience offers relief to job seekers and policymakers, though persistent price pressures and energy costs could temper further improvements.