U.S. economy surpasses expectations, adds 172K jobs in May
OAN Staff Jenna Lee
1:00 PM – Friday, June 5, 2026
The Bureau of Labor Statistics has reported that employers added 172,000 jobs in May, easily surpassing the expectations of economists polled by LSEG, who had predicted an increase of 85,000 jobs.
The strong employment data follows two consecutive months of solid payroll growth. On Friday, the Labor Department also revised its previous estimates upward, increasing March’s job gains by 29,000—from 185,000 to 214,000—and April’s gains by 64,000, from 115,000 to 179,000.
“President Trump and this Administration once again produced the best month of job creation since taking office, demolishing economists’ expectations. This Administration is proving the cynics wrong and American workers, families, and businesses are winning,” said Acting Secretary of Labor Keith Sonderling in a statement.
The leisure and hospitality sectors drove the bulk of the growth, adding 70,000 jobs—well above its average monthly gain of 14,000 over the past year.
The local government sector also saw gains, adding 55,000 positions. Meanwhile, healthcare added only 35,000 jobs in May, a slowdown for a sector that has typically led employment growth in recent reports.
Elsewhere, the manufacturing sector added 7,000 jobs, topping the 2,000 job-gain anticipated by LSEG economists, while the social assistance sector added 12,000 positions.
Overall, the job market expanded in May despite rising prices fueled by the conflict in Iran. As the Middle East conflict squeezes global energy supplies, inflation has hit its highest level in almost three years.
Seema Shah, chief global strategist at Principal Asset Management, noted that the report “reinforces that there is little basis for an easing bias from the Fed.”
“Job creation above 150,000 – very comfortably exceeding the Fed’s estimate of breakeven and also broad-based in nature – comes alongside inflation that remains above target and is expected to trend higher in coming months. In effect, both sides of the Fed’s dual mandate argue against cuts at this stage,” said Shah.
“Under the President’s leadership, American workers are seeing benefits in real time: rising wages, increased affordability, and over 903,000 private sector jobs added,” Sonderling emphasized. “The Department of Labor remains committed to advancing a bold, pro-worker agenda and will continue delivering for the American people.”
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