US Employment Report Looks Bad But It’s Good
Skerdian Meta • 1 min read
The US employment report was released a while ago while I was posting the European session forex brief. We covered it live on our forex calendar if you want to go and have a look at it. At first glance, it looked pretty bad as the unemployment rate jumped two points higher to 3.9% from 3.7% previously.
But if you look at the details of this report where the devil hides, things are not that bad. Instead, this report was pretty good. Earnings jumped by 0.4% in December while non-farm employment change surged 312k higher, against 179k expected. Let’s see all the numbers in the table below:
|Non-Farm Employment Change||312k||179k||155k|
|Average Hourly Earnings MoM||0.4%||0.3%||0.2%|
|Average Hourly Earnings YoY||3.2%||3.0%||3.0%|
As you can see, all the numbers are higher against expectations. A higher number is not good for the unemployment rate, but the participation rate also increased two points higher from 62.9% previously to 63.1%. A higher number of people filing for unemployment has affected the unemployment rate which also increased by 2 points.
Average hourly earnings increased by 0.4% in December which is the biggest monthly increase for this year together with the increase in August. The YoY average earnings also increased to 3.2% form 3.0% previously. Non farm employment change surged higher by 312k. Although, yesterday’s jump in ADP employment gave the market a hint for today’s main employment figures. So, it is a positive report overall and the USD has reversed to bullish now.