The U.S. labor market report reported a slow recovery in September, with the U.S. economy only recording an increase of 661,000 NFP jobs in the middle of the month. This reading is less than half of the job opportunities created in early to mid-August.
The number recorded is far from the expectations of analysts targeting job creation of 850,000. However, the number of jobs in August was revised to 1.47 million jobs created.
Societe Generale macro strategy expert Kit Juckers commented on this NFP figure that the recovery of the employment sector is still recovering but a little slow.
On the other hand, the good news is, the unemployment rate fell more than expected from 8.4% in August to 7.9%. Analysts initially expected the unemployment rate to drop to 8.2% in September. Not only that, the ‘U6’ unemployment indicator which took a wider count was also reported to be declining but still at a worrying level of 12.8%.
The reduction in employment increases is due to the reduction in the employment sector. Private sector employment has grown by 877,000, a figure higher than expected.
The US dollar index, which measures the greenback dollar against six major currencies, shows a strengthening of 93.915 as of 9.25 p.m.
