According to the Labor Department, 235 thousand new jobs were added in August. Economists surveyed by Bloomberg estimated the figure at 725 thousand, while the most pessimistic forecast assumed the figure at 400 thousand.
On the positive side, the data for the previous two months were revised down. The change in total nonfarm payroll employment for June was revised up by 24 thousand, and the change for July was revised up by 110 thousand. This year the average monthly job growth was 58 thousand.
Pressure on wage growth
In August, significant job gains occurred in professional and business services, transportation and warehousing, private education, or manufacturing. Retail trade employment declined over the past month. About 8.4 million people remain unemployed in the U.S. The unemployment rate fell 0.2 percentage points to 5.2 percent. Meanwhile, average hourly earnings for all workers on private payrolls rose 17 cents to $30.73 in August. - Data for recent months suggest that rising labor demand associated with the post-pandemic recovery may have put upward pressure on wages, the BLS report said.
Mixed dollar
The US dollar seemed to lose in the initial reaction to the data, then quickly recovered the losses to move back into weakness, which appears to have taken the EUR/USD to levels above 1.1900.
As a result, other USD-quoted markets, such as precious metals and cryptocurrencies, also seemed to rally. The price of gold approached $1,830 per ounce and was the highest since early August. Silver rose to USD 24.40 per ounce. Bitcoin is climbing above the $50,000 level. ETH is approaching the $4,000 level last seen in May, and since the bottom, after a correction, ETH already seems 130 percent more expensive.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
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