The U.S. labor market posted stronger-than-expected gains in May, with employers adding 172,000 jobs and the unemployment rate holding at 4.3%, according to figures from the U.S. Department of Labor.
The total job gains were nearly double what forecasters had projected.
Revisions to prior months also showed a stronger hiring picture than initially reported. March payrolls were revised upward by 29,000 to 214,000, and April was revised up by 64,000 to 179,000. Together, the two months reflect 93,000 more jobs than first estimated.
Leisure and hospitality lead gains
Leisure and hospitality employers drove much of the month’s growth, adding 70,000 jobs in May. That figure significantly outpaced the sector’s 12-month average gain of 14,000. Food and drinking places accounted for 48,000 of those positions.
Local government hiring rises
Government employment climbed by 55,000 in May, a gain largely attributed to local government hiring outside education.
Health care continues to experience steady growth
Health care added 35,000 jobs in May, in line with the sector’s average monthly gain of 38,000 over the past year. Ambulatory health care services contributed 26,000 jobs, including 11,000 in home health care. Hospitals added 6,000 positions.
The financial sector posts losses
Employment in the financial industry fell by 22,000 for the month. The sector is now down 107,000 jobs since its most recent peak a year ago. Losses were recorded in commercial banking, insurance carriers, and related activities.
