Economy adds 339K jobs in May, blowing past expectations

The U.S. added 339,000 jobs in May and the unemployment rate rose to 3.7 percent, according to data released Friday by the Labor Department.

The job market scrambled the expectations of economists in May.

Expert forecasters projected a gain of roughly 195,000 jobs last month, according to consensus estimates, but for the jobless rate to stay largely even at 3.5 percent.

The jobless rate has bounced between 3.4 percent — its level in April — and 3.7 percent since March 2022.

The Labor Department also revised March and April’s job gains up by a combined 93,000 jobs, the latest sign of the job market’s resilience as the broader economy slows.

Job market holds strong after rate hikes, bank fears

Businesses have powered through an economic obstacle course this year to keep adding workers and creating new positions as a stellar rate.

While job growth has slowed from the hiring explosion seen in the wake of the pandemic, the U.S. has added more than 850,000 jobs over the past three months.

Wages are also rising steadily despite the efforts of the Federal Reserve to cool down the job market. Average hourly earnings rose a sturdy 4.3 percent over the past 12 months.

Jobs report comes as debt ceiling cloud passes

The jobs report comes ahead of President Biden signing the budget agreement into law, which passed the Senate on Thursday. The president in a statement on Friday said it is a “good day for the American economy and American workers,” arguing that “the Biden economic plan is working.”

Biden said that thanks to Congress passing the budget agreement, his economic plan will continue to deliver.

“The agreement protects our historic and hard-earned economic recovery, and all the progress that American workers have made in the last two years. And it protects key priorities and accomplishments from the last two years,” he said.

Updated at 10:05 a.m. Alex Gangitano contributed.