Job creation in the US remained robust last month, despite rising prices and a sharp spike in borrowing costs weighing on the economy.
Employers added 339,000 jobs, but the unemployment rate rose to 3.7%, from April’s unusually low 3.4%.
The gains were far greater than expected, continuing a streak of hiring that has surprised economists.
Analysts have expected hiring to slow as the US central bank raises interest rates to try to rein in rising prices.
But payrolls have remained resilient, raising hopes the economy will avoid a painful recession, while also stirring debate about whether the Federal Reserve will have to take more aggressive action to bring inflation under control.
Inflation, the rate at which prices rise, was 4.9% in the US in April.
While that was the lowest in roughly two years, it remained more than double the 2% rate that the bank considers healthy.
Expectations of what Friday’s report might mean for interest rates in the months ahead were divided.