WASHINGTON - US job growth blew past estimates in May even as unemployment edged up, data showed Friday, underscoring the labour market's resilience as policymakers seek to cool the economy gradually.
But the hotter-than-expected figures could complicate the Federal Reserve's calculus as it weighs the right time to lower interest rates.
It also remains to be seen if positive employment data would translate into rosier perceptions of President Joe Biden, who has been struggling to convince voters of his handling of the economy.
The world's biggest economy added 272,000 jobs last month, up from a revised 165,000 in April, said the Department of Labor.
This was significantly above the 185,000 increase analysts predicted according to Briefing.com. It was also the highest level since December 2023.
The jobless rate crept up from 3.9 percent to 4.0 percent. But unemployment remains relatively low compared with recent decades, painting a picture of a still-healthy labor market.
"The great American comeback continues, but we still have to make more progress," said Biden in a statement.
He added that unemployment has been at or below four percent for 30 months, calling this "the longest stretch in 50 years."
"The mixed report will complicate the Fed's job," said Julia Pollak, chief economist at employment platform ZipRecruiter.
"Fed members and investors had clearly been hoping for a softer report, which would have raised confidence in the appropriateness of a July or September rate cut," she added.
The US central bank has held rates at a 23-year high in recent months, in hopes of easing demand to lower inflation sustainably.
With the economy still adding more jobs than anticipated, analysts expect the Fed to hold off rate reductions for longer.