Non-Farm Employment Change, Unemployment rate 3/6/2022

This article includes an explanation of both the employment report in the private sector, the unemployment rate and expectations for today's data, with a review of the data released during this week related to employment and the US economy

Non-Farm Employment Change

Determine the level of change in the level of people employed during the past month, with the exception of the agricultural sector
Job creation is an important indicator of economic recovery, which is closely related to the conditions of human resources and a large part of GDP

The US economy will likely add 325,000 jobs in May of 2022, which would be the smallest, albeit strong, job increase since April of last year. That would leave the economy less than 900,000 jobs below its pre-pandemic level, a sign that the labor market remains resilient and is approaching full employment. Meanwhile, wages are expected to rise 0.4%, slightly above 0.3% in April but the annual rate is expected to fall to 5.2% from 5.5%, confirming that inflationary pressures are easing but remaining high. The unemployment rate may have fallen to a new low before the pandemic at 3.5% from 3.6%

The estimate for today's data is 325,000 jobs

If the data is released above expectations, the impact on the currency will be positive and vice versa

Unemployment rate

Determines the proportion of the total workforce that is not employed and actively seeking a job during the past quarter

The US unemployment rate was unchanged at 3.6 percent in April of 2022, remaining the lowest since February 2020 and compared to market expectations of 3.5 percent. The number of unemployed decreased by 11 thousand to 5.941 million, while employment levels decreased by 353 thousand to 158.105 million. Meanwhile, the labor force participation rate fell to a 3-month low of 62.2% in April, from 62.4% in March.

The forecast for today's data is an average of 3.6%.

In the event that the unemployment rate recorded a reading lower than expectations, this will positively affect the currency and vice versa

These data are issued every Friday of the first month at three thirty in the evening, Mecca time

Just a reminder about the data released this week related to employment, unemployment and the economy in general, which gives us an idea of ​​the result of today's report

Wednesday 1 June

The Manufacturing Purchasing Managers' Index released by the Institute for Supply Management (ISM) released a positive reading at 56.1, higher than expectations of 54.4.

The employment data released a positive result of 11.40 million, higher than expectations of 11.29 million

Thursday 2 June

The ADP Nonfarm Private Sector Payroll Change released negative data at 128K, less than expected 295K

Unemployment claims rates were issued with a positive reading of 200 thousand complaints, less than expectations that were referring to 210 thousand

As a result of the data issued for this week, which recorded positive results in general, in contrast to the statement of the change in the non-farm private sector jobs issued by the ADP, which recorded a negative reading, which could constitute volatile results today.
In general, there is a slight improvement in the employment sector, but we expect volatile data for today, or positive, not negative

Tags : USD