The May employment report showed nonfarm payrolls rose by 172,000, well above the 88,000 jobs increase expected in a survey compiled by Bloomberg as of 7:30 am ET, while April payrolls were revised upwards to a 179,000 increase and March payrolls were revised upwards to a 214,000 increase, for a net upward revision of 93,000 jobs.
Private payrolls rose by 120,000 in May after a 177,000 increase in April, well above the increase of 89,000 private jobs expected. Leisure and hospitality jobs increased by 70,000 and health care and social assistance jobs rose by 47,200.
The unemployment rate remained at 4.3% in May, as expected. The labor force participation rate was also unchanged from 61.8% in April, and the size of the labor force rose by 83,000 on an increase in household employment that was partially offset by a decline in household unemployment.
Hourly earnings rose by 0.3%, as expected, and faster than a 0.2% increase in April. Hourly earnings were up 3.4% year-over-year, slower than a 3.6% year-over-year gain in the previous month.
The average workweek was unchanged at 34.3 hours in May, as expected.
The monthly employment report released by the Bureau of Labor Statistics consists of two separate surveys and is considered the most important data release for the month. The survey of businesses measures the levels of employment and wages and the length of the average workweek, broken down by industry.
The survey of households measures the number of people working or looking for work, the unemployment rate, those that have left the workforce and reasons for part-time work.
Market reaction can be mixed, particularly when the two surveys disagree. A strong increase in employment or a decline in the unemployment rate is generally a positive for stocks as sign of a strong US economy, but bonds would react negatively to the same news, particularly if wages rise sharply at the same time.