Investing.com – The U.S labor market showed weaker than expected readings as the economy created fewer jobs than expected in August and the unemployment rate was unchanged against forecasts for a slight decline, according to official data released on Friday.
Non-farm payrolls rose 151,000 in August, compared to the rise of 275,000 in July that was revised from the initial reading of 255,000. The data missed the consensus estimate for the creation of 180,000 jobs.
The jobless rate remained steady at 4.9% in August, compared to the forecast for a decline to 4.8%.
Average hourly earnings rose month-on-month by 0.1%, compared to the prior increase of 0.3% and coming below forecasts for an increase of 0.2%.
The participation rate remained unchanged at 62.8% in August.
Additionally, the private sector created fewer of the new job contracts than expected in August with a total of 126,000, compared to consensus expectations for 178,000.
July’s number was revised up to 225,000 private nonfarm payrolls, from the prior reading of 217,000.
Government payrolls increased by 25,000, compared to the creation of 50,000 public jobs that occurred in July, revised from an initial reading of 38,000.
Furthermore, the average weekly hours fell slightly to 34.3 in August, from July’s revised number of 34.4. Analysts had expected them to remain unchanged at the prior month’s initial reading of 34.5.
The dollar changed direction after the release, trading lower. The U.S. Dollar Index traded at 95.33, compared to 95.70 earlier. EUR/USD traded at 1.1230, from 1.1192 before the release, USD/JPY traded at 103.05, from 103.45, and GBP/USD was at 1.3322, compared to the previous 1.3281.
U.S. futures moved higher, extending gains, after the publication and, at 8:38AM ET (12:38GMT), the blue-chip Dow futures rose 0.30%, S&P 500 futures gained 0.27% and the Nasdaq 100 futures advanced 0.40%.
Elsewhere, in the commodities market, gold futures traded at $1,332.25 a troy ounce, compared to $1,320.15 ahead of the data, while crude oil traded at $43.94 a barrel from $43.64 earlier.