US August non-farm payrolls +187K vs +170K expected

<ul><li><a href="https://www.forexlive.com/news/us-july-non-farm-payrolls-187k-vs-200k-expected-20230804/" target="_blank" rel="follow">Prior</a> +187K (revised to +157K)</li><li>Two-month net revision -110K vs -49K prior</li><li>Unemployment rate 3.8% vs 3.5% expected</li><li>Prior unemployment rate 3.5%</li><li>Participation rate 62.8% vs 62.6% prior</li><li>U6 underemployment rate 7.1% vs 6.7% prior</li><li>Average hourly earnings +0.2% m/m vs +0.3% expected</li><li>Average hourly earnings 4.3% y/y vs +4.4% expected</li><li>Average weekly hours 34.4 vs 34.3 expected</li><li>Change in private payrolls +179K vs +150K expected</li><li>Change in manufacturing payrolls +16K vs 0K expected</li><li>Household survey +222K vs +268K prior</li><li>Birth-death adjustment +103K vs +280K prior</li></ul><p>The headline sees non-farm payrolls barely come in as a beat but the most notable detail is the jump higher in the unemployment rate from 3.5% in July to 3.8% in August. That said, a part of that owes to a jump in the participation rate to 62.8% (previously 62.6%) as well so there is that to consider.</p><p>The two-month net revision is also not a bright spot and it adds to the streak of the BLS revising lower every single non-farm payrolls print for this year so far. Besides that, the slightly softer wages data than estimated also points to more breathing room for the Fed to pause.</p><p>The initial reaction sees the dollar move lower alongside Treasury yields with USD/JPY now down 0.5% to 144.80. Meanwhile, equities are jumping up with S&amp;P 500 futures now up 28 points, or 0.6%, on the day.</p>

This article was written by Justin Low at www.forexlive.com.