The stronger-than-expected jobs gain reinforces expectations the Federal Reserve will delay rate cuts this year.
US employers added 172K jobs in May, exceeding the 85K estimate and marking the second straight month of robust hiring. The print followed an upwardly revised 179K gain in April, originally reported as 115K.
Analysts had anticipated a sharp slowdown to 85K after April’s initial reading, but the labor market remained resilient. The unemployment rate held steady at 4%, matching pre-pandemic lows.
Markets trimmed bets on a September Fed rate cut, lifting Treasury yields and the dollar while equities opened lower.