Today’s announcement saw the headline unemployment rate fall to 6.1%; representing the lowest level since October 2008. Meanwhile the payrolls figure smashed expectations, rising to 288k which represents the same figure announced for April; seen by many as an outlier. In fact, it seems that we have seen a shift in what the new norm is, with figures closer to 300k than 200k expected to increase in frequency. Add to this a positive revision to last month’s figure by 7,000 people and there is no doubt that the economy is reaching a critical stage where employers feel comfortable enough with the strength of the recovery to be able to take on more workers on a regular basis.
One thorn in the foot of this release came with the announcement that average earnings on a year-on-year basis fell to 2% from the 2.1% seen last month. Meanwhile the participation rate remained steady at 62.8. It is these figures along with elements such as part time employment which is viewed as ‘slack’ within the economy and Janet Yellen will be watching closely. That being said, Yellen will be well aware of the linkages between employment and economic growth, where newly empowered employees are able to consume far, pay more taxes and reduce the amount of support they need from the government. Which can only be a good thing.
Recommended Content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.