Jobs report for May is out and nonfarm payrolls increased by 172,000 jobs last month after rising by an upwardly revised 179,000 in April, the Bureau of Labor Statistics said in its closely watched employment report on Friday. The jobless rate remained at 4.3 per cent for a third straight month. The improvement in payrolls mostly reflects low layoffs.The U.S. economy posted another month of strong employment gains in May, confirming that the labor market was gaining traction after stumbling last year and sending short-term interest rates ​higher on Friday morning in the face of inflation stemming from the war with ​Iran. Treasury prices fell, sending yields higher. The yield on the 2-year note, which is most sensitive to Federal Reserve policy expectations, rose 10 basis points to 4.15 per cent while the ‌10-year yield rose 6 basis ⁠points to 4.54 per cent.The American job market continues to show surprising strength, shrugging off the high costs of the Iran war. Hiring has bounced back this year from a miserable 2025, showing resilience in the face of economic uncertainty and painfully high energy prices caused by the Iran war.The job gains last month were broad-based. Local governments added 55,000 workers, restaurants and bars 48,000, healthcare companies 35,000.In another sign of job market strength, Labor Department revisions added a combined 93,000 jobs in March and April. Job growth averaged 188,000 a month from March through May, marking the best three months of hiring since early 2024.Many young people are finding it tough to break into a stagnant job market. And workers who have been laid off struggle to get back to work. Nearly 28% of the unemployed in April had been jobless for more than six months, biggest share since December 2021.Seeing their prospects diminished, Americans are reluctant to leave their jobs and seek something better elsewhere. In April, the number of people who quit dropped to the lowest level since the frightening days of August 2020, when the COVID-19 was running rampant.Last year, employers added 9,700 jobs a month, fewest outside a recession since 2002.This year, hiring has rebounded, averaging 114,000 new jobs a month from January through May. Big tax refunds — the product of President Donald Trump’s 2025 tax cuts — have given the economy a lift, offsetting the impact of higher energy prices since the United States and Israel attacked Iran in late February. But the refunds have mostly been pocketed, and gasoline prices remain above $4 per gallon.Healthcare companies have been driving much of hiring over the past year.