US non-farm payrolls exceeded expectations
The highly anticipated US employment figures were announced. Non-farm payrolls came in well above expectations with 216 thousand in December. The unemployment rate remained unchanged at 3.7 percent.
In the US, non-farm employment increased by 216 thousand people in December 2023, exceeding expectations. The unemployment rate remained unchanged at 3.7 percent. While non-farm employment was expected to come around 170 thousand, the unemployment rate was estimated to be announced as 3.8 percent.
In December last year, employment continued to increase in the public, health care, social assistance and construction sectors, while it decreased in transportation and storage.
While the average weekly working hour fell to 34.3, the average hourly earnings, which the US Federal Reserve (Fed) carefully monitors, rose 0.4 percent to $ 34.27. Market expectations were for average hourly earnings to increase by 0.3 percent in the period in question. Average hourly earnings data increased by 0.4 percent in November 2023.
November data on non-farm employment was revised. Accordingly, the increase in non-farm employment was reduced from 199 thousand to 173 thousand for November.
The number of unemployed in the country increased by 6 thousand people to 6 million 268 thousand in December last year. The labor force participation rate decreased by 0.3 points to 62.5 percent in this period.
DOLLAR STRENGTHENS AGAIN
Leading indicators signaled that employment would rise. Private sector employment exceeded expectations with 164 thousand in December. The expectation for the data was for an increase of 125 thousand.
After the employment figures, the dollar index approached the 103 level. Thus, the global dollar index has carried its gains over 1.5 percent since the beginning of the year.
In the US, the 2-year bond yield increased by 10.1 basis points to 4.48 percent. The 10-year bond yield rose 8.5 points and exceeded 4 percent.
DECLINE IN INTEREST RATE CUT EXPECTATIONS
Following signals that employment is starting to heat up again, expectations for an early rate cut by the Fed have also changed.
According to the CME FedWatch Tool, expectations for a rate cut in March dropped to 50 percent again.
Non-farm payrolls rose by 199 thousand in November, above the 180 thousand expectation.
