Economists polled by Reuters had forecast 650,000 jobs created in May.
The claims dropped to 406,000, a new low since the Covid-19 pandemic ravaged the labour market early last year, the US Labour Department reported
This comes as the virus wanes and economy further reopens.
Investor focus on Thursday will be on the Labor Department's weekly jobless claims report, considered the most timely indicator of economic health.
CBOE volatility index eases from 2-month high; energy stocks fall as oil declines over 2%
Employment at temporary-help agencies and transportation and warehousing declined sharply.
Global stocks headed for their first weekly gain in three amid a surge in commodity prices, while traders braced for a key US jobs report later on Friday
Economists expect job growth will average at least 700,000 per month in the second and third quarters
Fewer than expected Americans filed new claims for unemployment benefits last week
Investors were spooked this week by rising interest rates, which offset optimism about an economic rebound.
This is a sign that many employers continue to cut jobs despite a drop in confirmed viral infections
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Biden said he was "encouraged" by bipartisan Senate efforts on a $900 billion relief package
The unemployment rate fell last month to 7.9% from 8.4% in August
Jobless claims had fallen last week below 1 million for the first time since March, to 971,000
The new report also showed that the four-week moving average, a method to iron out data volatility, decreased by 63,000 to reach 1.4 million
Trump said the US unemployment rate had dropped to 13.3%
Some Republicans fear voters are simply worn out by Trump. People are just so disgusted with how things are
Some of the jobs gains reported for May could be a reflection of the Paycheck Protection Program