ECON: NFP Slightly Weaker, Revisions MUCH Weaker, U/E Drops Thanks to LFPR
- NFP +169k vs 180k forecast
- July revised DOWN to 104k from 162k previously
- June Revised down to 172k from 188k previously
- Unemployment Rate (UNR) 7.3 vs 7.4 forecast
- LFPR (labor force participation rate) falls to 63.2 from 63.4
- Lowest since 1978 and accounts for drop in UNR
- Average workweek back up to 34.5 hours from 34.4 previously.
- Market Reaction: Big initial positive pop for bond markets. Main driver here is the negative revision to last month. There's some hesitation now after the first leg of the rally, and it remains to be seen whether it's a consolidation before improving further or organic resistance to further gains.
From the BLS:
Total nonfarm payroll employment increased by 169,000 in August, about
in line with the average monthly gain of 184,000 over the prior 12
months. In August, job growth occurred in retail trade and health
care, while employment in information declined. Employment continued
to trend up in food services and drinking places, professional and
business services, and wholesale trade.
Total nonfarm payroll employment increased by 169,000 in August, and
the unemployment rate was little changed at 7.3 percent, the U.S.
Bureau of Labor Statistics reported today. Employment rose in retail
trade and health care but declined in information.