U.S. payrolls rose by 172,000 in May, much more than expected; unemployment at 4.3%

Job growth unexpectedly surged in May as the U.S. labor market continued a solid year of expansion, the Bureau of Labor Statistics reported Friday.

Nonfarm payrolls jumped a seasonally adjusted 172,000 for the period, down slightly from the upwardly revised 179,000 in April and far above the Dow Jones consensus estimate for 80,000. The unemployment rate held steady at 4.3%, as expected.

The report came against a background of muted expectations as employers have held their ground in a low-hire, low-fire environment. While job gains have been largely concentrated in just a few sectors, layoffs also have been moderate, though some signs are building that artificial intelligence is having an impact on labor rolls.

Breadth of job gains improved in May, with multiple sectors seeing solid advances.

Leisure and hospitality led all sectors with 70,000 jobs, well above the 14,000 per month average over the past year. Local government added 55,000.

Health care, which has been the leading sector, contributed 35,000 new hires, about in line with its average. Social assistance added 12,000.

Average hourly earnings rose 0.3% for the month and were up 3.4% over the past year, both in line with the Wall Street consensus.

In addition to the strong jobs picture for May, revisions for prior months also presented an even better picture. The April tally represented an upward revision of 64,000 while March got a boost up to 214,000, a gain of 29,000.

Last summer, President Donald Trump, angered by weak jobs numbers and a high downward revisions, fired the BLS commissioner and installed William J. Wiatrowski as the acting chief.