The U.S. economy added more jobs than projected in May, but the unemployment rate topped 4% for the first time in nearly 18 months.

The mixed data from the Department of Labor likely decreases the chances the Federal Reserve will lower interest rates from 23-year highs.

Nonfarm payrolls expanded by 272,000 in May, nearly 50% higher than the Dow Jones estimate of 190,000, and more than 100,000 more than the April report.

The unemployment rate just barely missed the 3.9% forecast, marking the first time the figure has topped the 4% threshold since January 2022.

The healthcare (68,000), government (43,000) and leisure and hospitality (42,000) sectors saw the most job growth, accounting for more than half the gains.

Jobs