The U.S. labor market continued to expand in May, with employers adding 147,000 jobs while the unemployment rate remained unchanged at 4.2%, according to the Labor Department.

The report suggests hiring stayed resilient even as policymakers and investors watched for signs of a slowdown. Job growth across the month helped keep unemployment near a historically moderate level, though the pace of gains remained below some of the stronger readings seen in prior months.

Friday's data adds another snapshot of an economy that has so far avoided a sharp pullback in employment. Analysts often look to monthly payroll gains, wage trends, and labor-force participation together to gauge whether demand for workers is cooling or stabilizing.

The latest numbers are likely to feed debate over the outlook for interest rates and growth, with markets closely tracking whether the labor market can maintain momentum without reigniting inflation pressure.