The U.S. economy added 272,000 jobs in May, a stronger-than-expected increase that suggests continued resilience despite higher interest rates. The unemployment rate ticked up to 4.0% from 3.9% in April, according to data released on Friday by the Bureau of Labor Statistics.
Economists surveyed by Reuters had forecast 185,000 job gains. The May figures were boosted by strong hiring in healthcare, government, and leisure and hospitality.
Average hourly earnings rose 0.4% in May after increasing 0.2% in April. On a year-over-year basis, wages were up 4.1%, compared to 3.9% in the previous month.
The report also showed that job gains in March and April were revised slightly lower. March payrolls were revised down by 5,000 to 315,000, and April’s were revised down by 10,000 to 165,000.
The Federal Reserve is closely watching this labor market data as it considers when to begin cutting interest rates. A strong labor market can contribute to inflation, but also indicates a healthy economy.