US May Nonfarm Payrolls Surge by 172,000, Far Exceeding Expectations; Unemployment Rate Steady

(Central News Agency, Washington, 5th, combined foreign reports) The U.S. Bureau of Labor Statistics (BLS) reported today that nonfarm payrolls increased by 172,000 in May, far exceeding market estimates, while the unemployment rate held steady, indicating the labor market continues its solid expansion trend seen since the beginning of the year.

According to U.S. financial media CNBC, the seasonally adjusted monthly increase in nonfarm payrolls was slightly below the upwardly revised 179,000 in April, but far exceeded the 80,000 forecast by analysts polled by Dow Jones Newswires. The unemployment rate remained unchanged at 4.3%, as expected.

Market expectations for the latest economic data were lower, as employers have maintained a steady pace of hiring in an environment where both hiring and layoffs are low. New job creation was concentrated in a few sectors, but layoffs were relatively mild, although there are signs that artificial intelligence (AI) is impacting the labor market.

Officials at the U.S. central bank, the Federal Reserve (Fed), have recently become more optimistic about the labor market outlook and have turned their attention to the stubborn inflation problem; rising inflation has all but eliminated the possibility of further interest rate cuts by the Fed.

The Fed has been on hold this year after cutting its benchmark interest rate by three-quarters of a percentage point in the second half of 2025. Policymakers generally insist on waiting to see how the rest of the year unfolds before deciding on the policy direction.

Data from the Federal Reserve Bank of Atlanta shows the overall U.S. economy is solid, with gross domestic product (GDP) growing at an annualized rate of 1.6% in the first quarter and an estimated growth rate of 3% so far in the second quarter.

The latest data shows that the leisure and hospitality industry added 70,000 jobs last month, far exceeding the average monthly gain of 14,000 over the past year. The healthcare sector added 35,000 jobs in the same month, in line with the average over the past 12 months.

However, employment in the financial sector fell by 22,000, with the insurance industry and commercial banks most affected. The air transportation sector lost 9,000 jobs.

According to the data, average hourly earnings in the U.S. rose 0.3% month-over-month and 3.4% year-over-year in May, both in line with market expectations, another important indicator of labor market health. (Editor: Hung Chi-yuan) 1150605