Policymakers at the US Federal Reserve have raised interest rates 10 straight times in an effort to cool down the economy. However, the jobs market is showing continued resilience.
The Labor Department said on Friday that the economy added 339,000 new jobs in May. That was more than analysts had been expecting.
By sector, 64,000 jobs were added in professional and business services, 56,000 by government employers, and 52,000 in health care. Hiring also remained robust in the leisure and hospitality sector, with 48,000 new jobs.
The Labor Department also noted an uptick in the number of people out of work. However, the unemployment rate still stands at a relatively low 3.7 percent.
US President Joe Biden hailed the report as proof that his “economic plan is working.” He called it a “good day for the American economy and American workers.”
However, some analysts have a different take. They point out that a strong job market is one of the key drivers of inflation because employers are pressured to pay their workers more to keep them. That trickles down to consumers in the form of higher prices.
Investors will be keeping a close eye on how policymakers react to the figures. The Fed will meet June 13-14 to decide whether to continue raising rates or to take a pause.