Employers added a heftier-than-expected 157,000 jobs to their payrolls in May, signaling the economy was regaining its footing after stumbling in the first quarter.

The gain was nearly double the 80,000 increase in April but slightly below the 175,000 tally in March, according to revised figures released yesterday by the U.S. Labor Department. Economists had forecast 135,000 new jobs for May.

The nation's unemployment rate held steady at 4.5 percent and was down a notch from 4.6 percent the previous May.

So far in 2007, employment gains have averaged 133,000 per month, compared with 189,000 per month in 2006, the government said.

The report "confirms that the job market is pretty solid and is helping to mitigate the higher cost of living" due to rising food prices and the spiraling cost of gasoline, said Stuart Hoffman, chief economist at PNC Financial Services Group in Pittsburgh.

Average hourly earnings rose a modest 0.3 percent in May, compared with 0.2 percent in April. Over the last 12 months, earnings increased 3.8 percent. The length of the average workweek also ticked higher.

"With people working more hours and getting paid more, I think it explains why consumer confidence rose in May in the face of rising gas prices and presumably falling housing prices," Mr. Hoffman said.

The economy slowed to a near standstill in the first quarter, with the Gross Domestic Product edging up 0.6 percent, the worst showing since the final quarter of 2002, according to the latest estimate by the Commerce Department.

But with jobs and consumer confidence up, "Rather than worry that the first-quarter slowdown will result in a stall-out, it appears the economy's engines are revving up again," Mr. Hoffman said.

Many economists are expecting GDP to rebound to above 2 percent in the current quarter.

Yesterday's labor market report reinforced the view that the Federal Reserve will continue its hands-off policy on interest rates, economists said.

"The Fed likes what it sees," Mr. Hoffman said. "It sees the economy growing again and [overall] inflation stable to lower."

Job gains last month were recorded by health care, education, leisure, government and professional and business services.

Manufacturing lost jobs again, with about half the decline occurring in motor vehicle and parts production. The retailing and construction sectors were flat.