The U.S. labor market showed improvement in May, with employers adding jobs for the third consecutive month. According to the Labor Department’s report, employment figures for March and April were revised upwards significantly.

Restaurants and bars contributed notably, adding 48,000 jobs, highlighting anticipations for the summer season. Local governments, health care, and construction companies also saw growth. Health care maintained its role as a key contributor to job gains, adding 35,000 positions.

On the downside, the financial sector faced reductions, with banks and insurance companies cutting a total of 22,000 jobs.

Overall, the report reflects a positive trend, with an average of 188,000 jobs added each month over the past three months.

Additionally, the workforce saw a slight increase, with 83,000 individuals starting or seeking employment. The unemployment rate remained steady at 4.3%.

Despite increased hiring, wage growth remains modest. Average wages rose by 3.4% compared to the previous year, insufficient to match inflation rates, which rose by 3.8% over the same period.

Inflation concerns persist as prices have risen significantly since the U.S. conflict with Iran began three months ago. Stabilization signs in the job market redirect focus to inflation control, particularly for the Federal Reserve under Chair Kevin Warsh. Despite presidential pressure, immediate interest rate cuts are unlikely.

The upcoming Labor Department inflation report will be crucial for the Federal Reserve’s policy meeting in mid-June, providing essential data for economic decision-making.