February's NFP Reading Finally Decreases, But Markets Are Still Worried! This is the reason

thecekodok

 Job creation eased in February but was still stronger than expected despite the Federal Reserve's efforts to slow the economy and lower inflation.


The NFP reading rose by 311,000 for the month, based on a report reported by the Labor Department just now. This reading is however still above the Dow Jones estimate of 225,000 and a sign that the job market is still hot.


The unemployment rate rose to 3.6%, above expectations of 3.4%.



There was some good news in terms of inflation, as average hourly earnings rose 4.6% from a year ago, below estimates for 4.8%. The monthly increase of 0.2% was also below estimates of 0.4%.


Although the number of jobs was stronger than expected, February's growth represented a decline from January which recorded unexpected strengthening. The year opened with the NFP recording a reading of 504,000, a revised number just short of the 517,000 initially reported. December's total was also lowered slightly, to 239,000, a decrease of 21,000 from the previous estimate.


Stocks were mixed after this report was released, while Treasury yields were mostly lower. The US dollar index recorded a further decline after the NFP report with a decline to a trading level of 104.782 with a decrease of 0.47%.