Breaking: US Nonfarm Payrolls surge by 1.37 million in August vs. 1.4 million expected

Nonfarm Payrolls (NFP) in the US rose by 1,371,000 in August, the data published by the US Bureau of Labor Statistics showed on Friday. This reading fell short of the market expectation of 1.4 million and followed July's print of 1,734,000 (revised from 1,763,000).

Further details of the publication revealed that the Unemployment Rate dropped to 8.4% from 10.2% in July and came in better than analysts' estimate of 9.8%. Additionally, the Labor Force Participation Rate improved to 61.7% from 61.4% and the Average Hourly Earnings rose 4.7% on a yearly basis to match July's reading.

Follow our live coverage of the NFP report and the market reaction.

Market reaction

With the initial market reaction, the US Dollar Index edged higher and was last seen gaining 0.12% on the day at 92.88.

NFP Quick Analysis: Time to sell stocks? Under the hood, three factors may turn markets down.

The headlines are impressive – a fall of the US unemployment rate to 8.4% and an increase of 1.371 million jobs, within expectations. The upbeat headlines have pushed stocks higher, allowing them to recover after Thursday's sell-off.

Additional takeaways from the press release

"In August, 24.2 million persons reported that they had been unable to work because their employer closed or lost business due to the pandemic--that is, they did not work at all or worked fewer hours at some point in the last 4 weeks due to the pandemic."

"Employment in government increased by 344,000 in August, accounting for one-fourth of the over-the-month gain in total nonfarm employment."

"In August, average hourly earnings for all employees on private nonfarm payrolls rose by 11 cents to $29.47."

"The average workweek for all employees on private nonfarm payrolls increased by 0.1 hour to 34.6 hours in August."

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.