May Jobs Rally Surges as Hiring Broadens and Wages Rise

U.S. payrolls rose by 172,000 in May, beating expectations, with the unemployment rate steady at 4.3%; gains were broad, led by leisure and hospitality (+70k), local government (+55k), and health care (+35k). Average hourly earnings rose 0.3% for the month and 3.4% year over year. Revisions to prior months improved the picture, and the Fed is likely to hold rates as inflation remains the focus.