Non-Farm Payrolls poor 151K, but wages up 0.5% – USD

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A mixed jobs report: job gains are poor with 151K but the unemployment rate is down to 4.9% and with a rise in the participation rate to 62.7%. Wages are surprisingly higher as well: 0.5% m/m and 2.5%. Revisions are balanced with a minimal drop of 2K. 

The US dollar is strengthening after the initial slide.Wages seem to have the upper hand as they lead to core inflation, at least in theory. Are they good enough to battle the miss in jobs?

The US was officially expected to enjoy a gain of around 190K jobs in January 2016, yet official expectations may have been lower after the terrible and dollar-downing services sector report. The unemployment rate carried expectations of remaining at 5% while wages were predicted to advance by 0.3% m/m

The US dollar managed to stabilize ahead of the release.

Analysis: Are wages all the rage or is it profit taking?

Data (updated)

  • Non-Farm Payrolls:  151K (exp. +190K, last 292K before revisions)
  • Participation Rate: 62.7% (62.6% last month )
  • Unemployment Rate:4.9% (exp.5%, last month 5% before revisions)
  • Revisions: -2K – less in December and more in November (+50K last time)
  • Average Hourly Earnings: +0.3% (exp. +0.3% m/m, last month 0% m/m, 2.5% y/y)
  • Private Sector: 158K (ADP showed a nice 205K).
  • Real Unemployment Rate (U-6): 9.9% (previous: 9.9%).
  • Employment to population ratio: 59.6%  (previous: 59.5%)
  • Average workweek: 34.6 (last month: 34.5).

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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