US job market adds 172,000 jobs in May as unemployment holds at 4.3%

U.S. employers added 172,000 jobs in May, keeping the unemployment rate steady at 4.3% and signaling continued resilience in the labor market despite higher energy costs linked to the Iran conflict [1]. At the same time, weekly filings for unemployment benefits rose to their highest level in four months, underscoring lingering economic frustration for many households.

Key takeaways

• May job growth slowed slightly from April’s revised 179,000, but the unemployment rate remained low at 4.3% [1].
• Job openings climbed to 7.6 million in April, the highest since May 2024, outpacing forecasts of 6.8 million [1].
• Applications for unemployment benefits increased by 13,000 to 225,000 for the week ending May 30, the most since early February [1].
• The benchmark 30‑year mortgage rate fell to 6.48%, easing from a nine‑month high but still above pandemic levels [1].
• Stock markets slipped as big‑tech shares fell, while bond yields rose, dampening expectations of a Federal Reserve rate cut this year [1].

Labor market momentum amid higher energy prices

The Labor Department’s report on May 31 showed that employers added a surprising 172,000 jobs, a modest dip from April’s revised 179,000 but enough to keep the unemployment rate at a historically low 4.3% [1]. The data suggest that hiring has rebounded this year after a difficult 2025, even as the Iran war has pushed energy prices upward and strained household budgets. The Job Openings and Labor Turnover Survey (JOLTS) indicated that April saw 7.6 million job vacancies, up from 6.9 million in March and marking the most openings since May 2024; economists had expected only 6.8 million [1]. While layoffs fell, the number of workers quitting also declined, and gross hiring slipped, pointing to a labor market that is neither aggressively expanding nor contracting.

Consumer pressures and financial market reactions

Despite the solid job numbers, the week ending May 30 recorded 225,000 new applications for unemployment benefits, the highest weekly total in four months and above FactSet’s forecast of 211,000 [1]. This rise signals that layoffs, though not widespread, are still affecting some workers. On the housing front, the average 30‑year fixed mortgage rate eased to 6.48% from 6.53% the previous week, offering a modest reprieve for prospective homebuyers, yet remaining well above the sub‑6% levels seen a year ago and double the pandemic‑era rates [1]. Higher rates have limited purchasing power, while the ongoing conflict in the Persian Gulf has kept oil prices elevated, feeding broader inflation concerns. Meanwhile, equity markets closed lower as heavyweight technology stocks such as Nvidia and Broadcom slipped, and bond yields surged, reducing that the Federal Reserve will cut rates later this year [1].