As expected, the reading of the US NFP jobs report which is expected to increase strongly in June did not disappoint the market as it did in May and thus spurred trading in the market. Employment growth in June soared higher in tandem with faster U.S. economic growth.
Today, the U.S. Department of Labor has just released the latest June employment data awaited by researchers and ‘traders’. Based on the latest government employment report, employment data recorded a recovery beyond analysts' target of an increase of 850,000 for June.
This figure is much higher than what economists expected. Based on a Dow Jones survey, economists are targeting NFP data to only record an increase of 706,000. The figure also far surpassed the May figure which recorded a reading of 583,000 after being revised.
However, the unemployment rate rose to 5.9% from the expected 5.6%.
Employment has grown rapidly in the second quarter with more and more of those who lost their jobs during the pandemic starting to return to work. This is also driven by the reopening of the economy.
Along with increasingly positive data, economists see that GDP growth will grow at double digits of 10%. Among those that strengthen the projection is the distribution of the vaccine among the community that will reduce the rate of Covid-19 positive cases.
At the same time, the hospitality sector such as hotels, restaurants and the like have been allowed to operate. The sector recorded an increase of 340,000 workers amid easing of sanctions across America.
In addition, other sectors such as education have added 269,000 workers. While professional and business services increased 72,000 employees. The US dollar index, which measures the strength of the greenback against major currencies, showed a slight increase before falling sharper by 0.22% to a trading level of 92.382. Meanwhile, the XAU/USD pair jumped 0.97% to the trading level of 1,794.40.
