According to a report from The Associated Press, the American job market continues to show surprising strength, shrugging off the high costs of the Iran war.
Employers added 172,000 jobs in May – roughly double what forecasters had expected – and the unemployment rate remained at a low 4.3%.
The Labor Department reported Friday that job growth was down slightly last month from a revised 179,000 in April. The unemployment rate stayed at a low 4.3%
Hiring has bounced back this year from a miserable 2025, showing resilience in the face of economic uncertainty and painfully high energy prices caused by the Iran war.
The job gains last month were broad-based. Local governments added 55,000 workers, restaurants and bars 48,000, healthcare companies 35,000.
In another sign of job market strength, Labor Department revisions added a combined 93,000 jobs in March and April. Job growth averaged 188,000 a month from March through May, marking the best three months of hiring since early 2024.
“The hiring recession is over. American firms are hiring again,’’ said Heather Long, chief economist at Navy Federal Credit Union. “The job rebound is happening in almost every industry … This is encouraging news for job seekers and for the U.S. economy. The labor market has stabilized and is showing early signs of a genuine rebound.’’
With just five months to go before consequential midterm elections in the U.S., Americans have grown increasingly frustrated by rising costs and it’s unclear if the strong job numbers this year will drown that out.
Inflation data last week showed that in addition to gasoline, prices for groceries, clothing and electricity are also on the rise, indicating that inflation may be growing more entrenched.
Polls show that President Donald Trump’s approval rating on the economy is falling sharply after being re-elected largely on the promise of taming inflation.
And despite the pickup in hiring, wage gains were modest. Average hourly wages rose 0.3% from April and 3.4% from May 2025, consistent with the Federal Reserve’s 2% inflation target.
Click here for the full report from The Associated Press.
