US gains 272,000 jobs in May, blows past expectations

US gained 272,000 nonfarm employment in May, a figure close to 90,000 above market expectations of 185,000, according to Bureau of Labor Statistics’ latest report.

• the surprising job gain figures came at the backdrop of a combined 15,000 downward revision of nonfarm payroll numbers for March and April.

Unemployment rate rose to 4%, highest since November 2021.

The increase in jobless rate was driven by a drop in labor participation rate, to 62.5% from 62.7%. Nonetheless, prime-age (25 to 54 years old) participation rate increased 0.1 ppt to 83.6%.

Meanwhile, average hourly earnings increased by 4.08% over the year to May, first time we see an acceleration in the number since January. Over the month, average hourly earnings increased 0.4%, highest since January.