From Bloomberg:
Nonfarm payroll employment in August slipped 54,000 after falling a revised 54,000 in July. A big part of the weakness was seen in the government sector, which still included layoffs of temporary Census workers. Government jobs dropped 121,000 after falling 161,000 in July. For the August drop, 114,000 were due to layoffs of temporary Census workers. In contrast, private nonfarm employment continued to rise, gaining 67,000 in August, following a revised boost of 107,000 the month before. Average hourly earnings improved to 0.3 percent from up 0.2 percent in July. The average workweek for all workers was unchanged at 34.2 hours in July. The market forecast was for 34.2 hours. Turning to the household survey, the unemployment rate came in at 9.6 percent, compared to 9.5 percent in July. Looking ahead, recent initial jobless claims have been slowly trending down, suggesting that private payroll jobs might hold to a modest gain. However, the unemployment rate is still at risk of re-entrants to the labor force outweighing employment gains, boosting the unemployment rate.
Comments:
We should watch the Employment Situation and unemployment rate closely tomorrow.
If it rises above the psychological barrier of 10%, we could see some seriously negative reaction in the stock markets.
A rise in unemployment rate would confirm that deflation is tightening its grip and there is little the Fed can do, except make the situation worse.
Nonfarm payroll employment in August slipped 54,000 after falling a revised 54,000 in July. A big part of the weakness was seen in the government sector, which still included layoffs of temporary Census workers. Government jobs dropped 121,000 after falling 161,000 in July. For the August drop, 114,000 were due to layoffs of temporary Census workers. In contrast, private nonfarm employment continued to rise, gaining 67,000 in August, following a revised boost of 107,000 the month before. Average hourly earnings improved to 0.3 percent from up 0.2 percent in July. The average workweek for all workers was unchanged at 34.2 hours in July. The market forecast was for 34.2 hours. Turning to the household survey, the unemployment rate came in at 9.6 percent, compared to 9.5 percent in July. Looking ahead, recent initial jobless claims have been slowly trending down, suggesting that private payroll jobs might hold to a modest gain. However, the unemployment rate is still at risk of re-entrants to the labor force outweighing employment gains, boosting the unemployment rate.
Comments:
We should watch the Employment Situation and unemployment rate closely tomorrow.
If it rises above the psychological barrier of 10%, we could see some seriously negative reaction in the stock markets.
A rise in unemployment rate would confirm that deflation is tightening its grip and there is little the Fed can do, except make the situation worse.
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