London GMT New York Tokyo Moscow
Premium Calculator
TOP Brokers *
* Rebate per 100,000 EUR/USD lot
<a href="//www.instaforex.com/">Forex Portal</a>
January 4, 2019

Employment and Unemployment Up? Interpreting the NFPs

A few minutes ago, NFPs came up much higher than expected, at 312k compared to an expectation of 177k. At the same time the unemployment rate is up to 3.9%, compared to 3.7% last month.

While the two may appear contradictory remember that the employed and the unemployed are not a closed system. People enter and exit the employment/unemployment pool but can still remain in the labour force, if they are, for example, disgruntled by not finding a job, wish to spend more time with their children, or wait for a better wage rate and employment conditions before re-entering the job market.

This is what has happened in the US according to the latest data release, as participation rate, i.e. the percentage of people in the employment/unemployment pool as a percentage of the labour force has increased to 63.1%, compared to 62.9% last month.

Overall, this is a positive note for the US economy, given that more people see that the current job market is providing them with good incentives to work. This would only happen if workers have a positive outlook of the overall market and the economic outlook of the country. While it could be a one-off, especially given that it took place over the holiday season and the fact that the majority of jobs gains was from the service sector (notably health care, leisure activities, professional and business services, and retail trade) a continuation of this result would provide further support for a positive US economic outlook in 2019.

Click here to access the HotForex Economic Calendar

Dr Nektarios Michail

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

back
Found a mistake? Select it and press Ctrl+Enter.
Forex trading can involve the risk of loss beyond your initial deposit. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary. Risk Warning. Privacy Policy. Registration Agreement.