U.S. nonfarm payrolls rose 172,000 in May, the Labor Department said on Friday,
with April revised up from 115,000 to 179,000, extending two months of solid
gains. The unemployment rate held at 4.3% for a third month. The improvement
mainly reflects still-low layoffs; economists describe the market as in a “low
hiring, low firing” equilibrium. There are no signs the Middle East conflict has
pushed oil or Strait of Hormuz shipping costs high enough to materially affect
U.S. jobs, and the stronger payrolls could give the Fed more room to keep rates
on hold amid Iran-related inflationary upside.
