The U.S. labor market added 139,000 jobs in May, according to the Labor Department, coming in below economists’ expectations. The report also showed the unemployment rate edging up to 4.2%, a sign that hiring momentum has cooled.

The latest figures point to a still-growing economy, but one facing weaker job creation than in recent months. A slower pace of hiring can affect wage growth, consumer confidence and the broader outlook for interest rates and inflation.

Economists often watch monthly employment data closely because it offers one of the clearest snapshots of economic health. May’s report suggests the labor market remains resilient, but the rise in unemployment may raise questions about whether businesses are pulling back on expansion.

The jobs numbers are likely to remain central to debates over the direction of the economy in the months ahead, especially as policymakers weigh the risks of slower growth against persistent inflation pressure.