US Non-Farm Payrolls Exceed Expectations
Employment growth reached 162,000 in August, beating market forecasts. Following the release of the data, an immediate drop of $100 was observed in spot gold prices.
According to the August employment report released by the US Department of Labor, non-farm payrolls increased by 162,000 jobs. While the unemployment rate remained stable at 4.1%, upward revisions were made to the data for June and July.
Better-Than-Expected Increase in Employment Data
Non-farm payrolls in the US increased by 162,000 in August, significantly surpassing market expectations of 55,000. While employment growth was recorded in the food, beverage, and education sectors, losses were noted in the information sector.
Revision in Historical Data
Employment data for June and July were updated upwards. The increase for June was raised to 31,000, while the decrease of 23,000 in July was revised to an increase of 21,000, bringing a total employment increase of 55,000.
Unemployment Rate and Labor Market
The country's unemployment rate remained unchanged at 4.1%, following a course in line with expectations. The number of unemployed people increased by 115,000 to reach 7 million 31 thousand, while the labor force participation rate rose to 61.6%.
Wage Growth and Fed Monitoring
Average hourly earnings, closely monitored by the Fed, increased by 0.3% monthly and 3.1% annually. This annual increase was recorded as the lowest level since May 2021.
Sharp Decline in Gold Prices
The employment data coming in above expectations had an impact on the markets. The price of spot gold lost $100 following the data, dropping from the $4,470 level to $4,370.