The change in the number of people employed during the previous month, excluding the farming industry, rose by 150k vs. 188k expected. The reading is less than a half of the previous one (336k).
Average hourly earnings MoM rose 0.2% vs. expected 0.3%.
Unemployment rose to 3.9% vs. forecasted 3.8%.
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.
What is the current report’s meaning?
The first signs of a weakening labor market may give the Fed the green light to lower interest rates faster than expected. According to the American Central Bank representatives, a weaker labor market is crucial for lowering inflation to the target of 2%. 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 lower-than-expected number of jobs added and the higher unemployment rate, which may prevent the Fed from further hikes. EURUSD, SP500, and precious metals are rising.
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