USD: US Nonfarm Payrolls Surge: February Adds 275K Jobs, Exceeds 200K Forecast
US NFP data for the month of February came at 275K versus 200k expected, Unemployment rate rose to 3.9% from 3.7%. wage inflation soar to 4.3% but below 4.4% expected. US Dollar moved down after the data flashed. Due to no rate cuts in the near month is already told in FED Powell testimony last day.
US Nonfarm Payrolls Soar to 275K in February, Beating Expectations
The US Bureau of Labor Statistics (BLS) reported a robust increase in Nonfarm Payrolls (NFP) for February, reaching 275,000 jobs, surpassing market expectations of 200,000. However, the BLS revised the January figure down from +353,000 to +229,000.
The report indicated an increase in the Unemployment Rate from 3.7% to 3.9%, while the Labor Force Participation Rate remained stable at 62.5%. On the wage front, the Average Hourly Earnings registered a 4.3% yearly increase, slightly below the market forecast and January’s 4.4%.
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The BLS also mentioned revisions, stating, “The change in total nonfarm payroll employment for December was revised down by 43,000… With these revisions, employment in December and January combined is 167,000 lower than previously reported.”
USD: USD Extends Decline Post Strong US NFP, January Revision Shows Sharp Downward Correction
US NFP data for the month of February came at 275K versus 200k expected, Unemployment rate rose to 3.9% from 3.7%. wage inflation soar to 4.3% but below 4.4% expected. US Dollar moved down after the data flashed. Due to no rate cuts in the near month is already told in FED Powell testimony last day.
The headline Nonfarm Payrolls (NFP) figure for February exceeded market expectations by a substantial margin, with 275,000 new roles created compared to the forecasted 200,000. However, the positive momentum was offset by a significant downward revision to January’s release, which saw the initial figure of 353,000 revised down to 229,000, representing a difference of 124,000 jobs.
Additionally, the unemployment rate increased to 3.9%, surpassing both the previous level and the market forecast of 3.7%. Meanwhile, average hourly earnings experienced a decline, falling to 0.1%, contrary to the market consensus of 0.3%.
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Beyond the headline NFP figure, the overall tone of this month’s employment report indicates a labor market that is weaker than anticipated. These developments further support existing market expectations of a 25 basis point cut during the Federal Open Market Committee (FOMC) meeting scheduled for June 12th.
USD: US NFP Surges in February, Putting Pressure on Fed
US NFP data for the month of February came at 275K versus 200k expected, Unemployment rate rose to 3.9% from 3.7%. wage inflation soar to 4.3% but below 4.4% expected. US Dollar moved down after the data flashed. Due to no rate cuts in the near month is already told in FED Powell testimony last day.
The US economy maintained its positive momentum in February, with the Bureau of Labor Statistics (BLS) reporting an addition of 275,000 jobs during the month, following a creation of 229,000 jobs in the previous month. This brings the total jobs added in the past six months to over 1.5 million.
The unemployment rate in the US increased slightly to 3.9%, indicating a state of full employment, defined as a rate below 5%. Wages continued to rise in February, showing a 0.1% increase on a month-on-month basis and a 4.3% increase on a year-on-year basis. The labor force participation rate remained at 62.5%.
These figures were released shortly after ADP estimated that the private sector had created 143,000 jobs in February. According to the BLS, private nonfarm payrolls increased by 223,000 in the same month. Another report by the BLS indicated a decline in job vacancies in January.
Jerome Powell, the head of the Federal Reserve, had previously hinted that the central bank was confident about initiating rate cuts later in the year, anticipating a drop in inflation to the target point of 2.0%. However, the robust job numbers suggest that inflation may remain elevated for an extended period. According to the Phillips Curve, inflation tends to rise in a tight labor market as consumers increase their purchases.
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With the jobs report concluded, attention now turns to the upcoming Consumer Price Index (CPI) data. Economists expect inflation to remain elevated in February, with the headline CPI anticipated to rise by 2.8%, while core CPI is projected to increase to 3.7%.
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