The U.S. economy added 272,000 jobs in May, significantly exceeding economists’ expectations and suggesting continued resilience despite higher interest rates. The unemployment rate ticked up slightly to 4.0% from 3.9% in April.
The Labor Department’s closely watched employment report, released on Friday, also showed upward revisions to job gains in March and April. Average hourly earnings increased by 0.4% in May, indicating persistent wage pressures.
The robust job growth could complicate the Federal Reserve’s decision-making process regarding interest rate cuts. The central bank has been holding rates steady at a two-decade high to combat inflation.