Employment Cools Off in US, but Earnings Keep Increasing - Forex News by FX Leaders
US employment

Employment Cools Off in US, but Earnings Keep Increasing

Posted Friday, January 8, 2021 by
Skerdian Meta • 1 min read

Employment has been increasing in the US since May, after it posted some major declines in March and particularly in April during lock-downs, jobs have been increasing in the US, but the pace has slowed and today the non-farm employment was expected to show a 60K increase, down from 400-500K in previous months. But, they turned negative instead, sowing a 140K decline in December.

On Wednesday, the US ADP employment was also expected to show a 60K increase for December, but declined by 123K, so today’s report confirms the ADP report from earlier this week. The unemployment rate was expected to tick higher, but remained unchanged. Although, the underemployment fell and earnings increased, so it’s not all negative and we should see employment start to increase again in the coming months.

 

December US jobs data

  • December non-farm payrolls -140K vs -37.5K expected
  • October payrolls were +62.1K
  • Unemployment rate 6.7% vs 6.8% expected
  • Prior unemployment rate 6.7%
  • Participation rate 61.5% vs 61.5% expected
  • Prior participation rate 61.5%

More details

  • Underemployment rate 11.7% vs 12.0% prior
  • Average hourly earnings MoM +0.8% vs +0.2% expected
  • Average hourly earnings YoY +5.1% vs +4.5% expected
  • Average weekly hours 34.7 vs 34.8 expected
  • Two month net revision +135K
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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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