Robust hiring may spell new rate hike

America’s surprisingly resilient job market delivered yet another month of higher-than-expected hiring in May — adding 339,000 jobs.

The number raises the prospect that the Federal Reserve will continue hiking interest rates in hopes of battling stubborn inflation.

The latest figures released by the Labor Department also showed that unemployment rose to 3.7%, more than expected, from a five-decade low of 3.4%.

Analysts had expected hiring to slow to a still-healthy pace of 190,000 added jobs last month, according to a survey by the data provider FactSet.

Job growth in April was revised higher to 294,000 from an initial reading of 253,000.

Companies have steadily slowed hiring since January, when the three-month average pace of gains was an unusually strong 330,000.

The Fed would welcome a more modest rate of job growth.

The central bank has raised its benchmark interest rate 10 times in 14 months in an aggressive drive to conquer high inflation.

Fed officials have said they think strong hiring can often fuel inflation if companies feel compelled to raise pay to attract and keep workers. Prior to the release of the jobs report, top officials signaled that they expect to forgo a rate increase at their June 13-14 meeting.