In May, the U.S. added 272,000 jobs, significantly surpassing expectations of 190,000 and the previous month’s 165,000. Despite the job growth, the unemployment rate rose to 4%, the highest since January 2022. Job gains were primarily in health care, government, and leisure and hospitality. Average hourly earnings also increased by 0.4% for the month and 4.1% year-over-year.