Employment Research Brief

Labor demand shows resilience.  Employment growth appears to be gaining momentum after a stronger start to 2026. Employers added 176,000 jobs in May, and upward revisions to the prior two months added another 91,000 roles, pointing to an improving labor market. The unemployment rate held at 4.3 percent in May, staying within a narrow 4.3 percent to 4.5 percent band since mid-2025 and signaling relative stability. Hiring also broadened, with 10 of 14 major sectors adding jobs last month, led by leisure and hospitality, local government, health care and construction. These gains come as more restrictive immigration policy weighs on labor supply growth, making the latest prints more constructive. While headwinds remain, recent trends suggest the labor market may be entering a firmer phase.