US employment exceeded expectations in May

US nonfarm payrolls rose by 139,000 in May after rising by 147,000 in April. The figure surpassed the median estimate of 130,000 projected by economists surveyed by Reuters, indicating stronger-than-expected labor market conditions.

The unemployment rate held steady at 4.2%, a development that could give the Federal Reserve (Fed) a buffer to further delay resuming its monetary easing cycle.

The May US jobs report demonstrated the labor market’s resilience amid growing economic headwinds from import tariffs. Steady employment gains and rising wages pushed aggregate household incomes up 5% year-over-year, a strong foundation for sustained consumer spending, Reuters analysts note.

Josh Jamner from ClearBridge Investments believes the Fed is unlikely to adjust its current policy stance following the strong US employment data. According to the central bank’s officials, the labor market currently requires no urgent stimulus.