USD: US Nonfarm Payrolls Surge by 303,000 in March
The US NFP Data for the March Month came at 303K versus 200K expected down and 275K printed in the previous month. The unemployment rate printed at 3.8% lower than 3.9% in the previous month. Wage inflation down to 4.1% in line with forecast.
USD Index Market Price is moving in box pattern and market has rebounded from the support area of the pattern
US FED rate cut in June more unlikely from economists view due to Robust Jobs report printed in the March month. US Dollar rallied against Rivals today.
In its report released on Friday, the US Bureau of Labor Statistics (BLS) revealed that Nonfarm Payrolls (NFP) in the United States surged by 303,000 in March. This figure significantly exceeded the market consensus, which had anticipated an increase of 200,000. Furthermore, the previous month’s NFP growth of 275,000, initially reported, was revised downward to 200,000.
Additionally, the report indicated that the Unemployment Rate experienced a slight decrease, dropping to 3.8% from the previous month’s 3.9%. Meanwhile, the Labor Force Participation Rate saw improvement, rising to 62.7% from 62.5%.
Furthermore, the data revealed that the annual wage inflation, as measured by the change in the Average Hourly Earnings, met expectations, with a modest decline to 4.1%.
USD: US non-farm payrolls exceed March forecasts
The US NFP Data for the March Month came at 303K versus 200K expected down and 275K printed in the previous month. The unemployment rate printed at 3.8% lower than 3.9% in the previous month. Wage inflation down to 4.1% in line with forecast.
XAUUSD is moving in an Ascending trendline and the market has rebounded from the higher low area of the trendline
US FED rate cut in June more unlikely from economists view due to Robust Jobs report printed in the March month. US Dollar rallied against Rivals today.
In March, the U.S. economy saw a significant surge in job creation, surpassing economists’ expectations.
The U.S. Department of Labor reported that non-farm payrolls, in seasonally adjusted terms, increased by 303,000, well above the forecasted 200,000.
Following the release of the non-farm payrolls report on Friday, Fed funds futures adjusted to fully anticipate a 25 basis point interest rate cut by the Federal Reserve in September.
Moreover, revisions to the prior two months’ payrolls data were positive, totaling 22,000.
Average hourly earnings saw a 0.3% month-on-month increase, in line with expectations, as average weekly hours rose from 34.3 to 34.4.
Other aspects of the report also demonstrated strength, with the unemployment rate dropping by one-tenth of a percentage point to 3.8%.
Both employment and the labor force participation rate experienced robust growth.
Of particular note was the notable 469,000 increase in the civilian labor force to 167.9 million, which some analysts attributed to significant immigration.
Public sector hiring, particularly in local government excluding education, and healthcare, witnessed substantial increases, with a combined addition of 152,300 jobs.
Leisure and Hospitality also saw a notable uptick in hiring, with an increase of 49,000 jobs.
Some experts suggested that the recent surge in public sector hiring could be linked to pre-election efforts, while others pointed to favorable weather conditions impacting employment in Construction and Travel Leisure.
Paul Ashworth, chief North America economist at Capital Economics, remarked, “The blockbuster 303,000 increase in non-farm payrolls in March supports the Fed’s position that the resilience of the economy means it can take its time with rate cuts, which might now not begin until the second half of this year.”
USD: US NFP Surges: Adds 303K Jobs, Demonstrates Economic Strength
The US NFP Data for the March Month came at 303K versus 200K expected down and 275K printed in the previous month. The unemployment rate printed at 3.8% lower than 3.9% in the previous month. Wage inflation down to 4.1% in line with forecast.
EURUSD is moving in the Descending channel and the market has fallen from the lower high area of the channel
US FED rate cut in June more unlikely from economists view due to Robust Jobs report printed in the March month. US Dollar rallied against Rivals today.
In March, the U.S. job market experienced remarkable growth, as evidenced by a substantial increase of 303,000 nonfarm payrolls, surpassing the expected 200,000. This surge reflects the resilience of the labor market, following February’s adjusted gain of 270,000. Despite this impressive growth, the unemployment rate remained steady at 3.8%.
Sector-wise, notable job gains were observed in various industries. The healthcare sector added 72,000 jobs, while government sectors saw an increase of 71,000 jobs, and the construction industry added 39,000 jobs. Additionally, leisure and hospitality, showing an upward trend, added 49,000 jobs, returning to pre-pandemic levels. Other sectors such as retail trade, manufacturing, and financial activities saw minimal changes.
Average hourly earnings for private nonfarm employees increased by 12 cents to $34.69, indicating a 4.1% year-over-year increase. The average workweek also slightly extended to 34.4 hours.
Regarding unemployment rates among demographic groups, there were fluctuations. Unemployment increased for Blacks to 6.4%, decreased for Asians and Hispanics, and remained stable for Whites, men, and women. Long-term unemployment and part-time employment due to economic reasons remained relatively unchanged.
The robust job growth has influenced market dynamics, particularly regarding the Federal Reserve’s interest rate decisions. Although no rate changes are expected at the Fed’s May meeting, there is a 63% chance of a cut by June. Federal Reserve officials are closely monitoring inflation trends as they debate the necessity of rate adjustments.
USD: Biden praises ‘America’s comeback’ with 303K new jobs in March, surpassing forecast
The US NFP Data for the March Month came at 303K versus 200K expected down and 275K printed in the previous month. The unemployment rate printed at 3.8% lower than 3.9% in the previous month. Wage inflation down to 4.1% in line with forecast.
USDCAD is moving in Ascending channel and market has reached higher high area of the channel
US FED rate cut in June more unlikely from economists view due to Robust Jobs report printed in the March month. US Dollar rallied against Rivals today.
In March, the United States job market saw a robust addition of 303,000 jobs, surpassing economists’ expectations. This marks the 39th consecutive month of job gains in the country, with the unemployment rate declining to 3.8%. President Joe Biden lauded this achievement as a significant milestone in America’s recovery.
Despite the Federal Reserve’s efforts to address inflation by raising interest rates, hiring remained strong. Over the past 16 months, the Fed has raised benchmark interest rates from near zero to over 5%. While rate hikes have paused recently, Fed Chair Jerome Powell hinted at potential rate cuts in response to perceived job market weakness. However, the next rate decision is scheduled for May.
Inflation has moderated as interest rates increased, with the annual rate of price rises dropping to 3.2% in February from over 9% in June 2022. Despite robust hiring, particularly in healthcare, government, and construction sectors, wage growth has been modest, rising by 0.3% from the previous month and 4.1% over the year.
However, the report highlighted ongoing racial disparities in the job market, with the Black unemployment rate rising to 6.4%, its highest level since August 2022. While unemployment rates for Asians and Hispanics decreased, the rate for Whites remained unchanged at 3.4%.
Powell emphasized the importance of cautious policy adjustments to balance economic activity and inflation. He warned against reducing rates prematurely, which could jeopardize progress made on inflation. Analysts suggest that the strong job report supports the Fed’s stance on delaying rate cuts until later in the year.
In February 2024, non-farm employment in the US increased by a revised 270,000 jobs, while the unemployment rate rose slightly to 3.9%. ADP’s report on Wednesday also indicated robust job growth, with US businesses adding 184,000 new positions in March, the largest increase since July last year.
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