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The U.S. economy’s strong job growth continued in May, adding 172,000 total nonfarm payroll jobs, according to data released Friday by the U.S. Bureau of Labor Statistics. In addition to this growth, April’s job numbers were revised upward from 115,000 jobs to 179,000 jobs added.
Despite the stronger than anticipated job growth, unemployment remained at 4.3% with 7.5 million people unemployed. The unemployment rate has remained within a range of 4.3% to 4.5% since July 2025.
Most of the job gains in May occurred in leisure and hospitality, which added 70,000 jobs, followed by local government (+55,000 jobs) and health care (+35,000 jobs).
“Combined, these three sectors’ gains accounted for 160,000 of the total 172,000 jobs, a 93% share,” Mike Fratantoni, the senior vice president and chief economist of the Mortgage Bankers Association, said in a statement. “By contrast, there were job losses in the financial sector, and the report showed that finance has lost 107,000 jobs since last May.”
The construction sector also experienced growth in May, adding 17,000 jobs. However, residential building construction lost 1,700 jobs, while residential specialty trade contractors added 2,600 jobs. The majority of the construction sector’s job growth occurred within the nonresidential specialty trade contractor segment, which added 11,400 jobs.
Additionally, the real estate sector lost 2,500 jobs.
“While the job market is not showing broad-based strength, overall, there is surprising resilience,” Fratantoni said. “Meanwhile, inflation is too high. MBA continues to anticipate that the Federal Reserve’s next move will be a rate hike, and that means mortgage rates are unlikely to drop anytime soon.”
