The stronger-than-expected jobs gain may ease recession fears while keeping Fed rate-cut timing uncertain.
US nonfarm payrolls increased by 172K in May, exceeding the 85K estimate and marking a rebound from April’s revised 179K gain. The report suggests sustained labor-market resilience despite elevated interest rates.
April’s figure was upwardly revised from 115K, while economists had anticipated a slowdown to 85K in May. The unemployment rate remained steady at 4%, aligning with pre-report expectations.
Markets showed muted reaction initially, with Treasury yields edging higher as traders reassessed the Federal Reserve’s policy path.