The change in the number of people employed during the previous month, excluding the farming industry, rose by 187k vs. 170k expected. The reading is close to August’s (187k) and very close to July’s (185k). Average hourly earnings MoM rose 0.2% vs. expected 0.3%. Unemployment rose to 3.8% vs. forecasted 3.5%.
What Is a Non-farm 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 the employment rate goes hand-in-hand with consumer spending, one of the primary drivers of economic growth, the report is an excellent marker of the overall health of the US economy.
If you would like to expand your knowledge about Non-Farm Payrolls, please visit the link where we explain the essence of these data in detail: https://basitfx.com/blog/2023/02/15/non-farm-payrolls-and-their-impact-on-the-market-and-economy/
What is the current report’s meaning?
The continuing strong labor market in the US might give the opportunity for further rate hikes for the Fed. According to the representatives of the American central bank, the weakening of the labor market is crucial for weakening inflation and bringing it down to the target of 2%. On the other hand, the unemployment rate is rising. Currency pairs, precious metals, and the broad stock market remain instruments sensitive to changes in the labor market.
In the very first reaction, the market drew attention to the rising unemployment, which may prevent the Fed from further hikes. EURUSD, SPX500, and precious metals are rising.
