The U.S. job market is "hitting on all cylinders," National Economic Council Director Kevin Hassett said following the release of the May jobs report.
These figures serve as a critical indicator for the Federal Reserve as it determines the future of interest rates and evaluates the overall health of the national economy.
According to data released by the Bureau of Labor Statistics on June 5, 2026, the economy added 172,000 jobs [1], [2]. This figure exceeded market expectations [3]. The unemployment rate for May was 4.3% [4].
Hassett discussed the economic data during an appearance on CNBC’s "Squawk Box" program. He said the current state of the labor market is strong, emphasizing the resilience of hiring across the country.
However, Hassett provided a different perspective on the growth rate in a separate interview. He said jobs numbers are down because the country does not have a "massive inflow of immigrants that are working" [5]. This suggests that while the market remains strong, the absolute volume of new positions is influenced by shifting demographic and migration trends.
The May report arrives as policymakers weigh the balance between maintaining a low unemployment rate and controlling inflation. The addition of 172,000 positions [1] indicates continued demand for labor, though the pace of growth is subject to the external pressures Hassett identified regarding the workforce supply.
“"This is a job market that's hitting on all cylinders."”
The contradiction in Hassett's statements highlights a tension between qualitative strength and quantitative growth. While the 4.3% unemployment rate suggests a tight and healthy labor market, the acknowledgment that a lack of immigrant labor may be suppressing total job gains indicates a potential structural shift in the U.S. workforce that could impact long-term GDP growth.
