US Adds 172,000 Jobs in May Topping All Estimates

Summary

The US added 172,000 jobs in May, beating the 88,000 estimate, with upward revisions to prior months. The unemployment rate held at 4.3% and average hourly earnings rose 0.3%. The bond market saw yields rise across the curve, while equity futures pulled back. The report suggests a resilient labor market that could give the Federal Reserve reason to pause on rate cuts.

• May payrolls surged 172,000, far exceeding the 88,000 consensus estimate.
• Prior two months were revised higher by a net 93,000 jobs.
• Unemployment rate remained unchanged at 4.3%.
• Average hourly earnings rose 0.3% month-over-month, 3.4% year-over-year.
• Bond yields rose across the curve, with 2-year yields approaching 4.1% and 10-year yields above 4.5%.
• Equity futures declined, with the S&P 500 down 0.6% and Nasdaq 100 down 1.3%.
• Health care and social services led job gains, while financial activities lost 22,000 jobs.
• Three-month average payroll gain reached 188,000, the highest since March 2024.