The change in the number of people employed during the previous month, excluding the farming industry, rose by 336k vs. 163k expected. The reading is much higher than last month’s reading – 187k.
Average hourly earnings MoM rose 0.2% vs. expected 0.3%.
The unemployment rate remained unchanged at 3.8% vs. forecasted 3.7%.
What is a nonfarm payrolls Report?
Job creation is the foremost indicator of consumer spending, accounting for most economic activity. The NFP report covers the total number of jobs added or lost in the economy, the current unemployment rate, and the average hourly wage of employees. Because all of this data might tell us about future consumer spending, the report is an excellent marker of the overall health of the US economy.
If you would like to expand your knowledge about nonfarm payrolls, please click here, where we explain the essence of these data in detail.
What is the current report’s meaning?
The continuing strong labor market in the US might lead to further rate hikes for the Fed. According to the American Central Bank representatives, weakening the labor market is crucial for weakening inflation and bringing it down to the target of 2%. It’s worth noticing that currency pairs, precious metals, and the broad stock market remain instruments sensitive to changes in the labor market.
NASDAQ: A clear example of a violent market reaction.
In the very first reaction, SP500, Nasdaq, Gold and EURUSD plummeted. The dollar is appreciating.
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