Bureau of Labor Statistics Economic News Release
Employment Situation Summary
Transmission of material in this news release is embargoed until USDL-26-0786 8:30 a.m. (ET) Friday, June 5, 2026
THE EMPLOYMENT SITUATION - MAY 2026
Total nonfarm payroll employment increased by 172,000 in May, and the unemployment rate was
unchanged at 4.3 percent, the U.S. Bureau of Labor Statistics reported today. Job gains
occurred in leisure and hospitality, local government, and health care. Employment in
financial activities declined.
Household Survey Data
The major labor market indicators from the survey of households continued to show little or no
change in May. The unemployment rate held at 4.3 percent and has remained in a narrow range of
4.3 percent to 4.5 percent since July 2025. The number of unemployed people, at 7.3 million,
changed little over the month.
…
The number of people jobless less than 5 weeks declined by 286,000 to 2.2 million in May,
largely offsetting an increase in the prior month. The number of long-term unemployed (those
jobless for 27 weeks or more) was little changed over the month at 2.0 million but is up by
524,000 over the year. The long-term unemployed accounted for 27.5 percent of all unemployed
people in May. …
Establishment Survey Data
Total nonfarm payroll employment increased by 172,000 in May, similar to the gain of 179,000
in April. In May, job gains occurred in leisure and hospitality, local government, and health
care. Employment in financial activities declined… [end quote, much more detail at the link]
Jobs in Hospitality and Healthcare Propelled Hiring in May
…
Hiring trends have been looking sunnier this spring after a weak patch for the labor market in the fall and winter. …
American consumers report feeling miserable about the economy, gasoline prices, inflation and the labor market. A key measure of consumer sentiment has hit new all-time lows in recent months amid anxiety about future inflation… [end quote]
The unemployment numbers include only people who have actively searched for a job within the previous month. The don’t include people who are not working and not looking for a job.
The Labor Force Participation Rate - 25-54 Yrs. counts all working-age people, whether or not they are seeking a job. May 2026 is 83.9%, the highest since 2000.
With employment strong and picking up from a slow pace last winter, inflation high and the economy strong, Federal Reserve “hawks” are talking about raising, rather than lowering, the fed funds rate.
Nick Timiraos | Hiring Rebound Gives Ammo to Fed Hawks
By Nick Timiraos, The Wall Street Journal, 6/5/2026
Reacceleration in hiring this spring will provide more grist to Federal Reserve officials who are concerned about inflation and fear interest rates are too low to restrain new price pressures.
Some of those officials have suggested in recent days the Fed should be prepared to raise rates later this year, taking back at least some of the three quarter-point rate cuts officials made in the second half of last year. Those reductions were aimed at stabilizing a labor market that looks much healthier today than it did then…
The stronger case for rate hikes right now comes from the inflation outlook. Overlapping shocks—from the AI build-out, tariffs, and energy—threaten to keep prices running well above the Fed’s 2% target, even if there’s progress to reopen the Strait of Hormuz to commercial shipping. If the Fed stands still when inflation is rising, inflation-adjusted, or “real,” interest rates fall. That dynamic could animate deliberations over hikes even if the labor market doesn’t. [end quote]
This won’t come as a surprise to the markets since the options market has completely dropped the probability of a fed funds rate cut in 2026 for weeks and is leaning more toward a fed funds rate rise.
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
Wendy
Hiring beat expectations with 172,000 new jobs; unemployment rate held steady at 4.3%
By Harriet Torry, The Wall Street Journal, Updated June 5, 2026