May jobs report comes as inflation squeezes economy

The May jobs report, set to be released Friday morning, is expected to show that hiring has remained steady despite growing inflation.

The U.S. economy added a robust 172,000 jobs in May, a sign that the labor market remained resilient despite a growing energy and inflation crisis triggered by the ongoing war with Iran.

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According to the Bureau of Labor Statistics, the unemployment rate remained steady at 4.3%.

Job seekers attend the Mega JobNewsUSA South Florida Job Fair held in the Amerant Bank Arena on April 30, 2026 in Sunrise, Flo.Joe Raedle / Getty Images fileWhile hiring is solid, there’s growing concern about wages lagging the rate of price growth. Average hourly earnings rose 3.4% from a year ago. According to Jennifer Timmerman, an analyst at the Wells Fargo Investment Institute, that’s the lowest since 2021. In April, inflation sharply jumped to a 3.8%, its highest level in three years, due to the surging price of gasoline and the resulting economic ripple effect.