The US added 272,000 jobs in May, about a third more than forecast, reflecting a labor market that remains robust in the face of Federal Reserve efforts to tamp down inflation by slowing the economy.
The job gains followed downwardly revised gains of 165,000 jobs in April and 310,000 in March, the Bureau of Labor Statistics reported today. Average gains in the 12 months prior to May were 232,000 jobs. Economists expected gains of about 185,000 jobs in May, according to a survey by Trading Economics.
The jobless rate ticked up to 4pc, the highest in more than two years, from 3.9pc. Still, the unemployment rate remains near five-decade lows.
Futures markets after the jobs report indicated a 46pc chance the Fed will hold its target rate unchanged at a 23-year high through September, up from 31pc on Thursday. The Fed has said it needs to see more evidence of inflation slowing towards its 2pc target before it can begin to lower rates after hiking them in 2022-23 at the fastest pace in four decades.
Health care added 68,000 jobs in May, in line with gains over the prior 12 months. Government added 43,000 jobs, also near the 12-month rate, while leisure and hospitality gained 42,000 jobs. Professional, scientific and technical services took on 32,000 payrolls, a third more than usual. Retail added 12,000 jobs.
Construction added 21,000 jobs and manufacturing added 8,000 jobs. Mining lost 4,000 jobs.
Average hourly earnings rose by 4.1pc from a year earlier, up from a 4pc annual gain in the prior month.
