US job creation beat the consensus, but jobless rate held steady in August
On Friday the August employment rate showed better than expected readings from non-farm employment change that came at 201k, as opposed to the expected 191k. The data was higher than the consensus and better than the estimate provided last Thursday by ADP report, indicating 163k positions. However, the jobless rate came with a surprise, holding at 3.9%, while the analysis have expected the percentage to come at 3.8%. In addition, the wage inflation has advanced more than expected and wages have achieved the highest annual increase in the last 9 years.
According to Reuters, the nonfarm payroll success numbers were boosted by the hiring in the construction sector, professional and business services, as well as wholesalers. The strong wage growth is expected to support the expectations of a 3rd interests rate hike by the Fed in 2018, a decision to be seen when the policymakers meet end of this month, 25th and 26th of September to be precise. Combined with the manufacturing and services reports, the employment report suggests that the protectionist trade policy imposed by the Trump’s administration has had only a marginal impact on the economy so far, where the US economy has grew almost double from the pace which was set for the first quarter, growing at a 4.2% annualized rate, as opposed to the 2.2% that was set previously.
Not so good news came from Canada, where 51.6k jobs were lost in August as Statistics Canada report had shown on Friday. The expectancy was a gain of 5.1k jobs. In addition, the unemployment rate rose to 6.0%, while the expected percentage was 5.9. According to Bloomberg, Ontario has had the biggest employment drop in almost a decade and the overall numbers are making the economists doubt the actual strength of the labor market. As up to now, the Canadian economy has seen 14.6 jobs as losses in part-time employment counterweight the gains in full-time jobs.
On the European side, Germany has faced a second month of its industrial production decline, caused by the trade tensions between the US and the EU. On Friday the figures have shown a decline of 1.1% in July, while the economists were expecting a 0.2% increase.
ECONOMIC CALENDAR EVENTS FOR SEPTEMBER 10th
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