September NFP and Canada Job Numbers

U.S non-farm payroll (NFP) saw the first negative reading in seven years at -33k. Headline affected by distortion due to August hurricanes. The unemployment rate, fell two-tenths of a percentage point to +4.2%, a level not seen since early 2001. Workers’ wages jumped last month, another figure that may have been affected by the storms. Average hourly earnings rose 12 cents, or 0.45% from a month earlier. Wages were 2.9% higher from a year earlier.

Details:

  • US Labor Sep Nonfarm Payrolls -33K; Consensus +80K
  • US Sep Unemployment Rate 4.2%; Consensus 4.4%
  • US Sep Average Hourly Earnings +0.45%, or +$0.12 to $26.55; Over Year +2.9%
  • US Sep Private Sector Payrolls -40K and Government Payrolls +7K
  • US Sep Average Workweek 0.0 Hour to 34.4 Hours
  • US Sep Labor-Force Participation Rate 63.1%
  • US Aug Payrolls Revised to +169K; Jul Revised to +138K
  • USD remains better bid (€1.1678, £1.3037, ¥113.37) across the board, with treasury yields continuing to back up on inflation expectations.

    In Canada, employment rose in September for a tenth straight month and workers’ wages increased at their fastest pace in over 17-months. The country’s jobless remain unchanged from the previous month, sitting at a post-crisis low.

  • Canada Sep Net Jobs +10,000 From Aug
  • Canada Sep Jobless Rate Forecast At 6.2%
  • Canada Sep Full-Time Jobs +112,000; Part-Time -100,000
  • Canada Sep Avg Hourly Wages +2.2% From Year Ago
  • Canada Sep Participation Rate At 65.6% Vs 65.7% In Aug
  • On a year-over-year basis, Canadian employment increased 319,700, or 1.8%, with nearly all of the new jobs created over the past 12 months of the full-time variety, which tend to offer higher pay and steady benefits.

    The loonie (C$1.2564) finding support from the full-time employment headline print.

    This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell