See important Research Disclaimer.
Nearly all aspects of the jobs report dropped on the month, and missed expectations. The headline figure for September came in at 142,000, and traders were expecting 201,000 jobs to have been added.
The net revision for the previous two months was down 59,000. The average earnings on the month remained flat, and on a yearly basis increased by 2.2%, while the market anticipated a rise of 2.4%. The health care sector continued to add jobs, while the mining industry is still shedding numbers. On the bright side, the unemployment rate held at 5.1%.
The US dollar dropped immediately after the figures were announced and the possibility of a rate rise in December has been diminished, and for the same reason gold has enjoyed a bounce.
Equity traders viewed the figures as a confirmation that the US economy is growing at a slower rate as the cool down in the emerging markets takes its toll.
Rallies in stock markets haven’t lasted long recently and additional evidence of a slowing jobs growth in the largest economy in the world has added to concerns.