<article><p class="lead">The US added more jobs in May than analysts anticipated and revisions for the prior two months were also higher, signaling the labor market remains robust in the face of Federal Reserve rate hikes aimed at slowing growth to curb inflation. </p><p>The US added 339,000 nonfarm jobs in May, the Labor Department reported today, compared with analyst estimates for about 190,000 jobs. The May number followed upwardly revised gains of 294,000 jobs in April and 217,000 in March. Gains over the 12 months prior to May have averaged 341,000.</p><p>The stronger-than-expected job gains pose a challenge to the Fed, which has hiked its target rate at the fastest pace since the 1980s starting early last year. The Fed has signaled it is close to pausing amid slowing inflation and slumps in housing and manufacturing that could broaden into a broader recession. After today's report, CME's FedWatch tool shows about a 34pc chance the Fed will hike again later this month, up from a 20pc probability yesterday. </p><p>The unemployment rate increased to 3.7pc from 3.4pc the prior month, which was the lowest since 1969.</p><p>Average hourly earnings rose by 4.3pc over the past 12 months, compared with 4.4pc in the 12 months through April.</p><p>Job gains in May were reported in professional and business services, government, health care, construction, transportation and warehousing, and social assistance. </p><p>Manufacturing lost 2,000 jobs, construction added 25,000 jobs and mining added 3,000 jobs. Motor vehicles and parts added 6,800 jobs. Transportation and warehousing added 24,000.</p><p class="bylines">By Robert Willis</p></article>
