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Home – Jobs News – Job Market Notches Third Straight Month of Solid Growth

Job Market Notches Third Straight Month of Solid Growth

REUTERS–The U.S. economy posted a third straight month of strong job gains in May, confirming the labor market was gaining traction after stumbling last year and giving the Federal Reserve more room to keep interest rates unchanged amid rising inflation due to the war in the Middle East.

The closely watched employment report from the Labor Department on Friday painted an upbeat picture of the jobs market. The economy added 93,000 more jobs in March and April than previously estimated and the unemployment rate held at 4.3% for a third consecutive month. While financial markets boosted the chances of an interest rate hike in December, economists said the bar remains high for monetary policy tightening.

Economists say fiscal stimulus, in the form of tax and import tariff refunds, has cushioned the impact of the U.S.-backed war with Iran, which has stoked inflation through a surge in oil prices. Corporate profits have increased since the second quarter of 2025, allowing businesses to refrain from large-scale layoffs. Economists, however, warned of risks to the labor market if the war persists.

“This report is likely to confirm to the Fed that the labor market is in a stable place, allowing inflation to be the only focus and driver of Fed policy heading into the June meeting,” said Sophia Kearney-Lederman, a senior economist at FHN Financial.

Nonfarm payrolls increased by 172,000 jobs last month........

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