Nonfarm payrolls forecast to rise by 185,000 in May
Unemployment rate estimated to be unchanged at 3.9
Average hourly earnings seen up 0.3, 3.9 yearonyear

June 7 Reuters U.S. job growth likely maintained its moderate pace in May and wage gains were expected to hold steady, which would keep the Federal Reserve in waitandsee mode on interest rates but likely encourage bets the central bank will lower borrowing costs at least once this year.

The Labor Department39;s closely watched employment report on Friday is also expected to show the unemployment rate remained below 4 for the 28th straight month. While the labor market has softened in recent months, its stillsolid clip has allowed the Fed to take its time so far in deciding when to begin cutting interest rates.

The U.S. central bank is expected to leave its benchmark overnight interest rate unchanged next week in the current 5.255.50 range, where it has been since last July.

The employment report will provide further evidence that the labor market isn39;t as strong as it was a year ago and that it is converging towards a less inflationary balance, said Lydia Boussour, a senior economist at EYParthenon.

Nonfarm payrolls likely increased by 185,000 jobs last month after rising by 175,000 in April, according to a Reuters survey of economists. That gain would be below the average of 242,000 in the prior three months.

Estimates ranged from 120,000 to 258,000. The labor market continues to show resilience despite an…