US jobs report for May could point to slower hiring as Fed rate hikes cool demand for workers

WASHINGTON (AP) — America's surprisingly resilient job market may have delivered yet another month of solid hiring and pay gains in May, if economists' forecasts prove to be correct. Still, some signs of cooling could emerge in the government report being released Friday.  

Analysts have estimated that hiring slowed to a still-healthy pace of 190,000 added jobs last month, according to a survey by the data provider FactSet. That would mark a decline from the robust 253,000 jobs that were gained in April and would fall below the average for the previous three months of about 220,000. The unemployment rate is projected to rise slightly to 3.5% from a five-decade low of 3.4%.  

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

Federal Reserve officials 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. These companies typically pass on their higher labor costs to their customers by raising prices.