With the 6th of January 2023 marking the first Friday of a brand-new year, many market participants are highlighting the release of the latest Non-Farm Payrolls (NFP) data report. Seeing that the monthly release of NFP data accounts for approximately 80% of the US labour market employed in construction, manufacturing, and goods, it is simple to understand why the release of such information carries so much importance in the marketplace.
The much-anticipated NFP jobs report for December 2022 came in at a slightly higher-than-expected 223k, exceeding expectations of 203k. Additionally, the lower-than-anticipated 3.5% unemployment rate for December places the FED in an interesting position concerning future rate announcements. With unemployment rates falling, the FED’s ongoing battle against inflation will captivate many market viewers’ attention in the coming months. Wrapping up the most prominent data released in the latest NFP report, there was also a sizeable miss on average hourly earnings year-on-year, coming in at 4.6% against expectations of 5%.
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