The U.S. labor market cooled but held steady in May 2026. Employers added 172,000 nonfarm jobs and the unemployment rate was unchanged at 4.3 percent. Average hourly earnings rose 0.3 percent on the month and 3.4 percent over the year, a sign that wage growth is moderating rather than accelerating.
Hiring was led by leisure and hospitality (+70,000), government (+52,000), and education and health services (+40,000), while employment in financial activities declined. The labor force participation rate held at 61.8 percent and the employment-population ratio was little changed at 59.2 percent.
For business owners, the picture is steady but cooling: hiring is still positive, wage pressure is easing, and the job mix is tilting toward services and public-sector roles. This analysis is based on the U.S. Bureau of Labor Statistics Employment Situation for May 2026, released June 5, 2026.
Sources
Employment Situation (May 2026) · U.S. Bureau of Labor Statistics