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• 339,000 jobs were created, while expectations were for 188,000.

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Why it matters: The labor market is the most important data point the Fed looks at when gauging how its policies affect inflation.

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Be smart: The labor force grew by 130,000. We are now almost 2.4 million workers above the pre-pandemic participation level.

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• But, if we had the same participation rate now as in February 2020, there would be 1.95 million more workers in the labor force.

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By the numbers:

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• Wages rose 0.3% from April and 4.3% annually from May 2022.

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• Education and Health added 97,000 jobs; Professional and Business Services 64,000; Government 56,000; Leisure and Hospitality 48,000; Construction 25,000.

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• Industries that lost jobs in May were Information (9,000) and Manufacturing (2,000).

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What’s next: With another strong jobs report, the Fed is likely to raise rates again when it meets later this month.