Manufacturing employment declined by 12,000, transport equipment shed 15,000 jobs, largely responsible for strike activity. The wholesale trade fell by 12,000, declining its three months to 32,000. Retail trade offered a minor positive surprise, adding 10,500 jobs after the previous weakness.
Wage increase stable, but participation stable
Earning an average hourly increased 0.3% month-maiden, in accordance with expectations, reached $ 36.53. On an annual basis, wages increased 3.7%. The average workweek was stable at 34.2 hours. However, the participation of labor force was at 62.3%, unchanged from July and less than 0.4 percentage points from July. The employment ratio was flat at 59.6%.
Long -term unemployment increased by 1.93 million, now more than 25% of the total unemployed. New entry for labor force fell from 199,000 to reverse the profit from last month – a possible signal to reduce confidence among job seekers.
Mixed sector performance border reverses the job market
Employment benefits were limited in major areas. Construction lost 7,000 jobs, professional and professional services fell 17,000, and contracted financial activities by 3,000. Meanwhile, holiday and hospitality added 28,000 jobs, partially offset widespread weakness. Transport and Warehousing posted a small benefit of 3,600.
Market Outlook: Labor weakness for USD supports bias recession, dowish fed stance
Weak headline payroll figure, uplift in unemployment, and stable participation suggests a cooling labor market that can weight weigh on the US consumer demand. These developments are likely to increase expectations that the Federal Reserve will maintain a cautious approach, potentially delay in further tightening. With low inflation wages and soft employment generation, a close-term spirit to the US dollar turns lightly towards recession. Interest rate-sensitive property, such as Treasury and Tech Equity, can see renewed support from traders, which fears more dowish fed outlook.
