US employers added 172,000 jobs in May and the unemployment rate remained at 4.3 percent, indicating continued strength in the labor market even as inflation rises and uncertainty grows from Middle East tensions. Stocks declined sharply by Friday afternoon, led by a selloff in technology shares. The Nasdaq fell 4 percent, its biggest one-day loss in more than a year, while the S&P 500 dropped 2.6 percent and the Dow fell 1.3 percent. Analysts had expected roughly 80,000 new positions and an unchanged jobless rate. Earlier reports for March and April were revised higher by a combined 93,000 jobs. Gains were concentrated in leisure and hospitality, which added 70,000 positions including 48,000 in food services. Local government and health care employment also increased. The Bureau of Labor Statistics report follows other data showing solid hiring despite economic pressures and higher inflation. Job openings rose to 7.6 million in April, while layoffs and resignations stayed largely flat. Private payrolls grew by 122,000 according to ADP, with most sectors and company sizes adding staff except information and natural resources. ADP chief economist Nela Richardson noted that hiring was more widespread than in recent years and that momentum should continue into summer. Economists expect the Federal Reserve to keep interest rates unchanged at its June meeting. Some officials have signaled openness to future reductions, though most voting members are seen as unlikely to support immediate cuts.
