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The U.S. economy added 272,000 jobs in May, a stronger-than-expected increase that suggests continued resilience in the labor market. The unemployment rate ticked up slightly to 4.0%, according to data released Friday by the Bureau of Labor Statistics.
Economists surveyed by Reuters had forecast 185,000 job gains. The May figures were boosted by notable increases in healthcare, government, and leisure and hospitality.
The average hourly earnings rose 0.4% in May after a 0.2% gain in April. On a year-over-year basis, average hourly earnings increased 4.1% after rising 3.9% in the previous month.
The report also showed that the number of Americans working part-time for economic reasons increased by 524,000 to 4.5 million. The labor force participation rate edged down to 62.5% from 62.7% in April.
The Federal Reserve is closely watching the labor market data as it considers its next move on interest rates. While the strong job growth suggests the economy is still robust, the uptick in the unemployment rate could signal some cooling.