U.S. employers hired workers at a rapid pace for the third straight month in May, suggesting that the “jobless recovery” may indeed be over.

Nonfarm business payrolls grew by a net 248,000 jobs in May, raising this year’s monthly average to 238,000, the fastest pace in four years, the Labor Department reported today. That marked the third straight month that employers have added more than the 150,000 jobs economists say is necessary to keep the job market stable.

Payroll-growth figures for March and April were revised even higher. Employers added 74,000 more jobs than previously thought during those two months. The surge in job creation drew some previously discouraged workers back into the civilian labor force, expanding it by 233,000 to 146.9 million. The unemployment rate, as a result, held steady at 5.6% in May.

Economists had expected payrolls to grow by 215,000, and for unemployment to remain unchanged at 5.6%,

RBC Capital Markets says the report confirms the anticipated Federal Reserve Board tightening by 25 basis points at end of June. “Today’s report underscores that the U.S. economic expansion is on a solid footing and that the Fed will begin its rate tightening cycle soon. RBC continues to look for the Fed to hike rates by 25 bps at the end of June as well as for a 25 bps hike at each remaining Federal Open Market Committee meeting for the remainder of 2004.”