The US Non-Farm Payrolls report for February 2023 delivered another explosive upside surprise with another higher-than-expected jobs report. The Non-Farm Payroll employment report saw 311 000 new jobs added to the US labour force, higher than the 225 000 estimated.
The unemployment rate increased to 3.6% along with the number of unemployed people, now at 5.9 million, which will play into the Fed’s Hawkish narrative. US Average Hourly Earnings edged slightly lower than expected at 4.6% against analysts’ expectations of 4.7%. After the announcement, the S&P 500 saw some upside relief as US Treasury yields started to move lower as the market digested the report.
The US CPI data release scheduled for the 14 the of March will dictate whether the FOMC will raise interest rates by 50 basis points at their next sitting as the market expects.
Source: Bloomberg, US Bureau of Labor Statistics.
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