US non-farm payroll data for August exceeds expectations and gold prices drop
Non-farm employment in the US increased by 162,000 in August, exceeding expectations. Following this strong development, sharp drops were observed in ounce and gram gold prices.
In August, non-farm employment in the US increased by 162,000, coming in well above market expectations. While the unemployment rate remained stable at 4.1 percent, following the strong employment data, the price of ounce gold fell by approximately 95 dollars, and gram gold dropped to 6,845 liras.
Increase in Employment Data
According to the August report released by the US Department of Labor, employment in non-farm sectors across the country increased by 162,000 people. This figure pointed to an increase about three times higher than the expectations projected in the markets.
Sectoral Distribution and Revisions
Employment growth was particularly concentrated in food and beverage services and local government-related education sectors, while a decrease was recorded in the information sector. Additionally, employment data for June and July were revised upward by a total of 55,000 people.
Unemployment Rate and Other Indicators
The country's unemployment rate remained unchanged at 4.1 percent in August, while the number of unemployed people increased by 115,000 to reach 7 million 31 thousand. The labor force participation rate rose to 61.6 percent, and the average weekly working hours reached 34.4 hours.
Latest Status in Wage Increases
Average hourly earnings, monitored by the Fed in terms of monetary policy, increased by 0.3 percent monthly and 3.1 percent annually in August to reach $37.75. The annual wage growth rate fell to its lowest level since May 2021.
Decline Experienced in Gold Prices
The employment data exceeding expectations caused volatility in global markets, and ounce gold lost approximately 95 dollars in value within minutes. Domestically, gram gold dropped from 6,950 liras to the levels of 6,845 liras.