The Bureau of Labor Statistics in the US has released the Non-Farm Payrolls report, which measures the changes in the employment conditions in the US on a monthly basis, and evidently, little has changed in the US labour market since June. The American economy has added altogether 164 000 new jobs in July, which is significantly lesser than the initial forecasts for 224 000 new job openings but still is inlined with previous performances from 2019.
“Total nonfarm payroll employment increased by 164,000 in July, in line with average employment growth in the first 6 months of the year. In 2018, employment gains had averaged 223,000 per month.” [source]
Nevertheless, the unemployment rate has remained virtually unchanged at 3.7 per cent, and the aggregate number of unemployed persons remains little changed at 6.1 million.
Arguably, the most notable outcome from the entire report is the announcement of an additional 8 cents increase in the average hourly earnings for all employees on private nonfarm payrolls, which have now risen to $27.98. Higher wages typically translate to bigger disposal incomes for consumers, who can subsequently contribute to higher rates of consumer spending, which in turn is of pivotal importance for the entire price setting in the country and the inflationary conditions.
Thus far, the dollar currency index has decreased with 0.27 per cent in today’s trading session following the release of the unemployment data and the renewed escalation of the trade tensions between the US and China.