The U.S. economy added jobs at a modest pace in May amid uncertainty surrounding the impact of conflict in the Middle East on the labor market.
What are the key findings of the May 2026 jobs report?
The Bureau of Labor Statistics on Friday reported that employers added 172,000 jobs in May. That figure is above the estimates of economists polled by LSEG, who predicted a gain of 85,000 jobs.
The unemployment rate held steady at 4.3%, which was in line with the expectations of LSEG economists.
Revisions were made to the payroll numbers for the prior two months, with March revised up by 29,000 from a gain of 185,000 to a gain of 214,000; while April’s report was revised up by 64,000 from a gain of 115,000 to 179,000.
Taken together, employment in March and April was 93,000 jobs higher than previously reported.
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What sectors added or lost the most jobs in May 2026?
Private payrolls added 120,000 jobs in May, well above the LSEG poll’s prediction of 85,000 jobs. April’s gain of 123,000 jobs was revised up to 177,000 jobs, while March’s gain of 190,000 jobs was revised up to 202,000.
Government payrolls grew by 52,000 jobs in May. Local government accounted for most of the gain, adding 55,000 jobs for the month compared with 1,000 jobs added by the federal government. Those gains were partially offset by a decline of 4,000 jobs in state government.
The manufacturing sector added 7,000 jobs in May, topping the gain of 2,000 jobs expected by LSEG economists.
Healthcare added 35,000 jobs in May, roughly in line with the average monthly gain of 38,000 jobs over the past 12 months. Most of those gains occurred in ambulatory healthcare services (+26,000) and in hospitals (+6,000).
Social assistance added 12,000 jobs in May, mainly in individual and family services (+10,000). The sector has added an average of 17,000 jobs per month over the last year.
The financial activities sector shed 22,000 jobs in May and the sector is down by 107,000 jobs from a recent peak in May 2025. Most of the job losses occurred at insurance carriers (-11,000) and commercial banking (-3,000).
What does the May 2026 jobs report mean for the workforce?
What experts are saying about the May 2026 jobs report
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