US Job Growth Surges to Highest Since March 2024 Amid Immigration Crackdown

US nonfarm payrolls rose by 172,000 in May, with prior two months revised up by 93,000, pushing the three-month average to 188,000—the highest since March 2024, according to the Bureau of Labor Statistics. This reverses a years-long downward trend. Federal government employment has plunged by 333,000 since January 2025, while state governments shed 58,000 jobs. Local governments added 28,000 jobs. The labor force has shrunk due to immigration crackdowns, constraining supply. The unemployment rate edged down to 4.30% in May. Prime-age labor force participation hit 83.9%, the highest since the Dotcom Bubble. Average hourly earnings rose 0.32% month-over-month and 3.45% year-over-year, but inflation at 3.8% now exceeds wage growth. Healthcare and social assistance led job gains with a three-month average of +66,000, followed by leisure and hospitality (+48,000) and local government (+28,000). Financial activities shed 15,000 jobs. Manufacturing added 7,000 jobs, construction 14,000, and retail trade 11,000. Transportation and warehousing added 22,000. The information sector lost 3,000 jobs. Arts, entertainment, and recreation added 5,000. Wholesale trade lost 2,000. Other services lost 1,000. Utilities added 1,000. The data reflects a tight labor market driven by constrained labor supply amid moderate demand.