Job growth came in at a better-than-expected reading in April despite a bank crisis and a slowing economy, according to a Labor Department report on Friday.
The NFP reading rose 253,000 for April, beating Wall Street estimates for growth of 180,000 based on a statement from the Bureau of Labor Statistics.
The unemployment rate was 3.4% compared to estimates of 3.6% and tied for the lowest level since 1969.
Average hourly earnings, a key inflation barometer, rose 0.5% for the month, more than the 0.3% estimate. On an annual basis, wages rose 4.4%, higher than expectations for a 4.2% gain.
Professional and business services led job gains with an increase of 43,000. That was followed by health care (40,000), leisure and hospitality (31,000) and social assistance (25,000).
Despite the banking industry's serious problems, jobs in finance rose by 23,000. Government employment increased by 23,000.
The surprise in April was offset by a sharp downward revision in the previous month. The March count was reduced to 165,000, down 71,000 from the initial estimate, while February fell to 248,000, a reduction of 78,000.
Friday's NFP report comes amid ongoing problems in the banking industry, particularly mid-sized regional institutions that have been hit by deposit withdrawals and investor fears that have caused share prices to fall.
At the same time the economy appears to be slowing towards a possible recession later this year. Gross domestic product rose just 1.1% in the first quarter, largely due to inventory drawdowns despite signs that consumer spending is weakening. Credit card spending, for example, has declined 0.7% from a year ago, according to Bank of America.
Despite bank problems and fears of a recession, the Federal Reserve this week raised its benchmark interest rate by another quarter percentage point, taking it to the highest level since August 2007.
Fed Chairman Jerome Powell acknowledged that higher interest rates have weighed on households, although he noted that the labor market remains strong. He added that the economy "is likely to face further problems from tighter credit conditions."
