According to a report from the U.S. Department of Labor, the American job market added 172,000 jobs in May 2026, establishing economic resilience across the nation despite rising costs from the war in Iran.
The increase in employment reported was more than double what economists had expected. According to The Wall Street Journal (WSJ), economists had predicted an increase of 80,000 positions filled.
Increases Based on Industries
During May, the leisure and hospitality industry, local government, and health care added to the increase in “nonfarm payroll employment.”
Leisure and hospitality added 70,000 jobs, a significant increase from the monthly average of 14,000. Within the industry, restaurants and bars obtained 48,000 new employees.
Excluding education, local government employment added 55,000, reflecting a 44,000 increase.
In the Health Care industry, employment fell in line with the average monthly gain of 38,000, adding 35,000 new jobs.
Additionally, the U.S. Bureau of Labor Statistics reported that the unemployment rate has remained relatively unchanged, sitting at 4.3 percent.
Unemployment rates have ranged from 4.3 to 4.5 percent since Aug. 2025.
The report also indicated that average wages were up just 3.4% from the year prior, a figure that does not appear to keep up with inflation, given that prices of goods and services are up 3.8% as of Apr. 2026.
Rick Scott Praises the Trump Administration For The Increase
"This is great, POTUS [President Donald Trump] is focused on creating American jobs and helping hardworking families achieve their American Dream," Sen. Rick Scott wrote on X.
President Trump Reacts To Labor Report
“With a great Jobs Report, like just announced, stocks should go up, not down. That’s the way it was for 200 years. Growth does not mean inflation! How else can a Country attain GREATNESS???” President Trump commented on Truth Social following reports that the stock market continues to decrease as Treasury yields climb.
Given signs that the job market is stabilizing, reports indicate that the Federal Reserve will most likely raise interest rates while focusing on keeping inflation under control.
Raising interest rates would go against President Trump’s wishes, as the president has previously criticized former Fed chair Jerome Powell for not cutting rates in the past.
