This is good.
Nonfarm payrolls only fell 54,000 way ahead of expectations. (The decline was due to Census layoffs, which were expected)
The private sector added 67K jobs. Analysts had been looking for a gain of 40K, and Goldman Sachs had predicted 0.
Wages grew by 0.3% vs 0.1% expected.
What’s more, the reports for the last two months were revised higher, which is a great sign.
Yields are jumping on Treasuries. Stocks are jumping.
U-6, so-called “real unemployment” ticked from 16.5% to 16.7%.
The average hourly work week was unchanged at 34.2 hours.
The background: Analysts are expecting a loss of 120K jobs for August, however this includes Census layoffs. What everyone is interested in is private-sector hiring. Goldman Sachs sees 0 net hiring by the private sector, though the general consensus seems to be more in the range of 30k-40K new jobs.
Due to the firming of the recent data, there’s some hope that we may see a positive surprise, but it’s hard to say. Earlier this week the ADP came in weaker than expected, and showed a net loss of private sector jobs.
There’s also an estimate of a gain of 0.1% in wages.
Business Insider Emails & Alerts
Site highlights each day to your inbox.