Analysts had expected an average of 88,000 new jobs in May, according to a compilation of forecasts by the Bloomberg news agency.
The figure increases the likelihood that the US Federal Reserve (Fed) will tighten by raising the key interest rate at its meeting on June 17. That means the strong job numbers are pushing futures prices down ahead of Friday's opening on Wall Street.
When the jobs figures were released, the market had priced in a 3.4 percent probability of a rate cut in June, according to research firm CME Fedwatch. Half an hour later, that had fallen to 1.6 percent.
The unemployment rate in May was unchanged at 4.3 percent, in line with market expectations, according to the report.
The report also shows that 179,000 new jobs were created in April, according to revised figures. The previous estimate was 115,000.
What do you think?