The US Job Market Is Strong, but Many Americans Are Still Frustrated by Prospects and Rising Prices

May payrolls rose by 172,000, and the unemployment rate held at 4.3%, the Labor Department reported, signaling continued strength in the U.S. job market despite higher energy costs tied to the Iran conflict. April’s payroll gain was revised to 179,000. Hiring was broad-based, with local governments adding 55,000 jobs, hospitality venues 48,000, and health-care employers 35,000. Revisions to March and April added a combined 93,000 jobs, underscoring sustained momentum through the spring. Over March through May, job growth averaged 188,000 a month, the strongest three-month run since early 2024.

Analysts described the results as a positive surprise given energy-price headwinds, even as inflation remains a concern. Average hourly wages rose 0.3% from April and 3.4% from May 2025, aligning with the Federal Reserve’s target range. The report highlights resilience in hiring alongside rising prices for gasoline, groceries, clothing and electricity, complicating public sentiment as midterm elections approach. Some economists also note an uptick in investment in artificial intelligence contributing to the broader economy, though uncertainty persists about how long the momentum will last.