169,000 Non-Farm Payroll Jobs Added In August

jouThe U.S. economy added 169,000 non-farm payroll jobs in August lower than 177,00 estimate from briefing.com but higher than 162,000 in July, according to latest employment figures from the U.S. Department of Labor.

Meanwhile, the unemployment rate lowered to 7.3 percent from 7.4 percent as more Americans dropped out of the labor market.

The labor participation rate dropped to 63.2 percent from 63.4 percent, the lowest level since the summer of 1978.

July’s non-farm payroll number was revised lower to 104,000 from 162,000, the lowest increase since June 2012.

June’s non-farm payroll number was revised lower to 172,000 from 188,000.

The combined revisions for June and July were lowered by 74,000.

The August non-farm payroll report is the final piece of closely watched employment data ahead of the September 17-18th Federal Reserve meeting where a decision is expected to be reached over tapering or changing the pace of the Federal Reserve’s $85 billion monthly quantitative easing program that has driven interest rates lower and helped to fuel the economic recovery in the United States.

Yesterday payroll processing firm ADP reported that hiring in private U.S. businesses continued at a modest pace in August with 176,000 jobs added in August, down slightly from estimates of 180,000 according to briefing.com and lower than 198,000 jobs added in July.

Concerns about a reduction in monetary easing support from the Federal Reserve has weighed down investment and capital injection in emerging markets, a topic that is being widely discussed in the G20 Summit from St. Petersburg Russia that is intended to focus on economic policy but is largely overshadowed by discussion about Syria and its recent chemical weapons attack with no clear consensus emerging from the meeting.

Economic data released yesterday from the Institute For Supply Management (ISM) showed a reading of 58.6, the most growth level since December 2005 in the service industry. Following the ISM data, the Benchmark yields on the 10 year Treasury climbed to 3 percent, a 25 month high.

Based on today’s disappointing employment report for August, the Benchmark yield on the 10 year Treasury lowered to 12 basis points to 2.87 at 8:55 a.m.EST which also suggests that traders are betting the Fed many not begin tapering in September.

 

 

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