The US economy added 272,000 jobs in May, more than expected and showing continued strength despite rate hikes. The unemployment rate remained at 4% while average hourly earnings rose slightly. Job growth has cooled this year but is seen as normalization, not necessarily a recession sign. Fewer employed people are switching jobs as the "Great Resignation" ends. Hiring remains strongest in leisure and hospitality and professional services. A decelerating labor market results in reduced wage growth, which is disadvantageous for workers but indicates a potential decrease in overall inflation.