Non-Farm Employment Change- Unemployment Rate 8/7/2022

Non-Farm Employment Change

Determines 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 the gross domestic product

The US economy likely added 268,000 jobs in June of 2022, which would be the lowest reading since April of 2021, compared to 390,000 in May. The unemployment rate is seen unchanged at 3.6%, remaining the lowest since February of 2020 and wage growth likely to be flat at 0.3%. Most jobs may have been created in leisure and hospitality and the manufacturing sector may have created 15,000 new jobs, despite Tesla's ongoing layoffs. On the other hand, lower salaries are observed in the construction sector and the financial sector. The June report will still indicate a tight labor market, with the economy adding more jobs than it did before the COVID-19 crisis and employment leaving about 554,000 jobs below the pre-pandemic level.

The estimate for today's data is 260,000 jobs

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

Unemployment rate

The unemployment rate determines the proportion of the total labor force that is not working and actively seeking a job during the past quarter

The unemployment rate in the United States was unchanged at 3.6 percent in May of 2022, the same rate as in the previous two months, and remained the lowest level since February 2020 and compared to market expectations of 3.5 percent. The number of the unemployed increased by 9 thousand to 5.950 million, while the employment levels increased by 321 thousand to 158,426 million. Meanwhile, the labor force participation rate rose to 62.3% in May from a 3-month low of 62.2% in April.

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 3:30 pm Mecca time

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

Wednesday 7 July

The Institute for Supply Management (ISM) Manufacturing Purchasing Managers' Index released a positive reading of 55.3, higher than expectations of 53.9.

The employment data released a positive result of 11.25 million, higher than expectations of 11.05 million

Thursday 7 July

Unemployment claims were issued with a negative reading of 235 thousand complaints, less than expectations that were referring to 230 thousand

As a result of the data released for this week, which recorded volatile results in general, and with an increase in unemployment claims, we expect volatile or negative data to be released today in terms of the change in employment in the private sector and the unemployment rate