The long-resilient US labor market slowed down a little in May, adding 139,000 jobs, according to Bureau of Labor Statistics data released Friday.
Last month’s job gains, which came in slightly more than expected, marked a retreat from April, which was downwardly revised to 147,000.
The unemployment rate held steady at 4.2%, and wage gains continued to outpace inflation.
April’s figure was revised down from 177,000 to 147,000, but despite the adjustment, headline numbers continue to outperform expectations.
Despite the revision, May’s stronger-than-expected hiring suggests the labor market remains firm. This adds to the view that the Federal Reserve may take a more cautious approach to cutting interest rates, with expectations potentially needing to be reassessed.