US job growth blew past estimates in May while unemployment also edged up, according to government data released Friday, underscoring the labor market’s resilience as policymakers seek to cool the economy gradually.
The world’s biggest economy added 272,000 jobs last month, up from a revised 165,000 in April, said the Department of Labor.
This was significantly higher than the 185,000 increase that analysts predicted according to Briefing.com.
The jobless rate, meanwhile, crept up from 3.9 percent to 4.0 percent, the department said.
Average hourly earnings rose by 0.4 percent on-month, and by 4.1 percent from a year ago.
A robust jobs market has allowed consumers to continue spending even in the face of elevated interest rates — giving the US economy a boost.
But as households draw down on their savings and borrowing becomes more expensive for individuals and businesses, the situation could change.
Fed policymakers are watching for signs that the economy is cooling, and analysts expect them to act if the slowdown comes sooner than expected.
The Fed’s next policy meeting will take place on Tuesday and Wednesday.
