Jobs report October 2023: U S. payrolls increased by 150,000 in October, less than expected
A weak jobs report may have the opposite effect, as investors become concerned about the health of the economy. Department of Labor can have a substantial impact on forex markets when the numbers are released on the first Friday morning of a new month. Moreover, nonfarm payrolls can also affect stock prices by influencing the interest rate environment. non farm payroll A strong jobs report may lead the Federal Reserve to raise interest rates to prevent an overheated labor market or curb inflation, leading to a decline in stock prices. Conversely, a weak jobs report may lead the Federal Reserve to keep interest rates unchanged or even lower them, creating a loose monetary policy environment that can boost stock prices.
Two Mondays ago, 10-year U.S. yields surpassed the 5% mark for the first time since the Lehman Brothers crisis. Cardano has noted a spike in daily active address activity and trade volume of ADA tokens, in the past month. The count of whale transactions valued at $1 million or higher increased considerably between November 3 and 6. The payrolls processing firm said that companies added 113,000 workers for the month, higher than the unrevised 89,000 in September but below the Dow Jones consensus estimate of 130,000. And here’s the labor-force participation rate, which tracks the share of people employed or actively looking for work. Following a third quarter in which gross domestic product expanded at a 4.9% annualized pace, even better than expected, growth is projected to slow considerably.
NFP and Interest Rates
The U.S. economy saw job creation decelerate in October, confirming persistent expectations for a slowdown and possibly taking some heat off the Federal Reserve in its fight against inflation. The big question everyone is asking today (and yesterday) is “Is the bottom in the bond market?”
So far, following the FOMC decision, https://www.bigshotrading.info/ the market seems to think so. Non-farm payrolls are a monthly statistic representing how many people are employed in the US, in manufacturing, construction and goods companies. Generally, investors quickly react to the figure, and there is a strong correlation to immediate market movement when the information is released.
The non-farm payroll data included in the jobs report typically has the most market impact. Non-farm payroll data is analyzed closely because of its importance in identifying trends related to the rate of economic growth and inflation. If non-farm payrolls are expanding, the increase is an indication that the economy is growing. However, if increases in non-farm payroll occur at a fast rate, this may lead to an increase in inflation and that may be viewed as a negative for the economy. Data on wage growth and the rate of unemployed, which are also included in the monthly jobs report, will also help shape inflation expectations and estimates for future economic growth. The non-farm payroll report also includes other key pieces of information.
As market participants, we must interpret trends that can have long-term implications and consequences for our careers. When deciding on our major for college or which type of business to start up, the trends in the non-farm payroll can help us in long-term growth and assist with our career trajectories. The NFP report generally affects all major currency pairs, but one of the favorites among traders is the British pound/U.S. Because the forex market is open 24 hours a day, all traders can trade on the news event. It is possible to wait for wide rate swings to subside when traders can capitalize on the real market move after the early speculators have taken profits or losses. Whatever your strategy, a great way to build and maintain your financial portfolio is with a SoFi Invest® online brokerage account.
- Nonfarm payrolls (NFPs) are the measure of the number of workers in the United States excluding farm workers and workers in a handful of other job classifications.
- This monthly data release provides investors with an understanding of the health of the labor market and the economy as a whole.
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- Almost all of the jobs came from services-providing industries, with goods producers contributing just 6,000 toward the total.
- Traders are expecting the October NFP report to show 179K net new jobs and average hourly earnings rising 0.3% m/m.
The nonfarm payroll measures the number of workers in the U.S. except those in farming, private households, proprietors, non-profit employees, and active military. Consumer Price Index data showed inflation was up 3.7% in September from a year ago, the same percent increase as in August. Gross domestic product also rose at an annualized rate of 4.9% in the third quarter, based on the advance estimate released by the Bureau of Economic Analysis. And employers are still looking to hire people — with 5.9 million hires in September. “The labor market has cooled off from its 2021 highs, but demand for workers is no longer dropping off,” Bunker said. “But with labor supply still growing, this continued high level of demand won’t necessarily push up inflation and draw the Federal Reserve’s ire.”