US Labour Market Shows Stronger Job Growth in May 2026

Stronger-Than-Expected Employment Gains

In May 2026, nonfarm payrolls in the United States increased by 172K, outpacing market expectations of 85K. This performance followed an already solid labour market outcome in the previous month, with April job gains revised up to 179K.

Revisions to earlier data further reinforced the strength of the report. Employment levels for March and April are now estimated to be 93K higher than previously reported. These adjustments indicate that job growth in recent months has been stronger than initially thought.

Overall, the data depict a labour market that has remained resilient, with employment expanding at a pace above earlier projections.

Sector Breakdown of Employment Changes

Job gains in May were concentrated in several key areas. Leisure and hospitality recorded employment increases, contributing to overall job growth. Local government employment also rose, adding to public sector gains. In addition, the health care sector continued to expand its workforce.

By contrast, employment in financial activities declined during the month, partly offsetting gains seen in other sectors. Despite this weakness, the net effect across industries remained positive, supporting the overall increase in total employment.

Taken together, the sectoral pattern shows ongoing strength in services such as leisure, hospitality, and health care, alongside continued hiring at the local government level, while financial activities represented a notable area of contraction.

FAQ

How many jobs did the US economy add in May 2026?
The US economy added 172K jobs in May 2026.

How did the May jobs figure compare with forecasts?
The May increase of 172K jobs was well above forecasts, which had projected a gain of 85K jobs.

Which sectors saw job gains and which saw declines?
Job gains occurred in leisure and hospitality, local government, and health care, while employment in financial activities declined.

What was the impact of data revisions on recent employment figures?
Upward revisions to March and April data raised estimated employment levels by a combined 93K jobs, indicating stronger job growth than previously reported and pointing to a resilient labour market.