U.S. Adds 172,000 Jobs in May as Long-Term Unemployment Stays Elevated

The U.S. labor market added 172,000 jobs in May, beating expectations and showing that employers are still hiring despite inflation pressure and higher borrowing costs. The unemployment rate held at 4.3%, but the report carried a warning sign for job seekers: long-term unemployment remained at 2.0 million and was up 524,000 from a year earlier, according to the Bureau of Labor Statistics.

Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →

For the economy, the mixed report cuts two ways. Strong payroll growth lowers recession fears, but it also gives the Federal Reserve less reason to cut interest rates soon. That matters for mortgages, credit cards, auto loans, business borrowing and risk assets.

Investors reacted by dialing back rate-cut hopes, with stocks falling after the report. Crypto-focused outlets also noted Bitcoin sliding toward $62,000 as traders recalibrated Fed expectations.

Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →