- Prior was -23K
- Two-month net revision +55K
- June was +57K
- Unemployment rate 4.1% vs 4.1% expected
- Prior unemployment rate 4.1%
- Unrounded unemployment 4.1413% vs 4.0900% prior
- Participation rate 61.6% vs 61.4% prior
- U6 underemployment rate 7.7% vs 7.9% prior
- Average hourly earnings +0.3% m/m vs +0.3% expected
- Average hourly earnings +3.1% y/y vs +3.0% expected
- Average weekly hours 34.4 vs 34.3 expected
- Change in private payrolls +127K vs +45K expected
- Prior private payrolls +30K
- Change in manufacturing payrolls +16K vs +5K expected
- Government payrolls +35K vs -53K prior
Ahead of the report, fed funds futures were pricing in a 50% chance of a September rate hike and 32 bps of hikes this year. USD/JPy was trading at 156.13 and S&P 500 futures were up 2 points.
This is a great report and there is a big US dollar bid in the aftermath. The jump in participation is a nice reversal from the recent trend and it’s what kept the unemployment rate at 4.1% rather than lower.
This article was written by Adam Button at investinglive.com.