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NFP: Pros and cons from a strong report – Nomura

FXStreet (Bali) – According to Nomura, overall, the NFP was a strong employment report, indicative of stronger hiring, economic activity, and less unemployment, with hourly earnings suggest that as of now, inflationary pressures from wages remain benign.

Key Quotes

Positives

 Nonfarm payrolls added 288k jobs, handily beating market consensus
(Consensus: 215k, Nomura: 245k).

 Manufacturing sector added 16k jobs.

 Service providing sectors such as retail trade (+40k), professional business services (+67k) and leisure and hospitality (+39k) showed meaningful job gains.

 Average hourly earnings were up by 0.2% (Consensus: 0.2%)

 Unemployment rate declined to 6.1% (6.085%) from 6.3% (6.297%)
(Consensus: 6.3%).

 Employment population ratio increased to 59.0%, a 0.3pp increase from the prior year.

 Household employment increased by 407k, while the number of unemployed declined by 325k.

 Long-term unemployment rate declined to 2.0% (1.978%) from 2.2% (2.168%).
 Short-term unemployment rate declined to 4.0% (4.045%) from 4.1% (4.106%).

Negatives

 Labor force participation rate was unchanged at 62.8%.

 The number of voluntary job leavers declined by 21k.

 The share of part-time workers for economic reasons increased to 26.9% from 26.7%.

 Construction sector added a meager 6k jobs.
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