- The Non Farm Payrolls rose by 199K which is far below the 422K forecasted data.
- The unemployment rate however saw a significant bull with a drop to 3.9% from the forecasted 4.1%.
- Wages increased by 4.7% YoY
According to CNBC news, the U.S. economy added far fewer jobs than expected in December just as the nation was grappling with a massive surge in Covid cases, the Labor Department said Friday.
Nonfarm payrolls grew by 199,000, while the unemployment rate fell to 3.9%, according to Bureau of Labor Statistics data. That compared with the Dow Jones estimate of 422,000 for the payrolls number and 4.1% for the unemployment rate.
The stock market suffered a serious decline after the data release while bond yields experienced some positive moves. The Dow Jones index was up to about 50 points during the afternoon trading, however the NASDAQ & S&P 500 struggled to stay up as it was held back by some company stock.
We experienced a pretty indecisive market on Gold, having a bullish move for a few pips, and then a sudden reversal to keep the morning trade to the bears. Gold however regained and remained positive until the close of the Markey for retail traders.
Job creation was highest in leisure and hospitality, a key recovery sector, which added 53,000. Professional and business services contributed 43,000, while manufacturing added 26,000.
The unemployment rate was at a new low since the pandemic began. That decline came even though the labor force participation rate was unchanged at 61.9% amid an ongoing labor shortage in the U.S.
“The new year is off to a rocky start,” wrote Nick Bunker, economic research director at job placement site Indeed.
This data was released containing the numbers in December, 2021 well before the Omicron variant had spread deep in the United States. This is a Ricky start for the economy going into 2022 and with the Omicron spread, we can’t exactly say the future prospects look positive.