The US Bureau of Labor Statistics (BLS) stated on Friday that nonfarm payrolls (NFP) increased by 187,000 in July. This estimate fell short of the market’s anticipation of 200,000. The June increase of 209,000 was reduced down to 185,000.
The unemployment rate fell to 3.5% from 3.6%, but annual wage inflation, as measured by changes in average hourly earnings, remained stable at 4.4%, higher than the market projection of 4.2%. The release also revealed that the U6 Unemployment Rate fell to 6.7%, while the Labor Force Participation Rate remained steady at 62.6%.
“The May change in total nonfarm payroll employment was revised down by 25,000, from +306,000 to +281,000, and the June change was revised down by 24,000, from +306,000 to +281,000.” “From +209,000 to +185,000,” the BLS said in a press statement. “With these revisions, combined employment in May and June is 49,000 lower than previously reported.”
Nonfarm payrolls market’s reaction
The immediate reaction to the mixed July jobs report put the US Dollar under pressure. At the time of publication, the US Dollar Index was down 0.3% for the day, standing at 102.15. Meanwhile, US market index futures are holding onto moderate gains, indicating a good start for Wall Street.
