Investing.com – The U.S labor market showed weaker than expected readings as the economy created fewer jobs than expected in September and the unemployment rate unexpectedly rose, according to official data released on Friday.
Non-farm payrolls rose 156,000 in September, compared to the rise of 167,000 in August that was revised from the initial reading of 151,000. The data missed the consensus estimate for the creation of 175,000 jobs.
The jobless rate unexpectedly rose to 5.0% compared to the forecast for it to remain unchanged at 4.9%.
Average hourly earnings rose month-on-month by 0.2%, compared to the prior increase of 0.1%. That was in line with forecasts.
The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation.
The participation rate edged forward to 62.9% in September, from the prior reading of 62.8%
Additionally, the private sector created fewer of the new job contracts than expected in September with a total of 167,000, compared to consensus expectations for 170,000. July’s number was revised up to 144,000 private nonfarm payrolls, from the prior reading of 126,000.
Government payrolls decreased by 11,000 last month, compared to the creation of 23,000 public jobs that occurred in August, revised from an initial reading of 25,000.
Furthermore, the average weekly hours rose slightly to 34.4 in September, from August’s number of 34.3. The reading matched expectations.
Immediately after the release, the U.S. Dollar Index traded at 97.13, compared to 97.05 earlier. EUR/USD traded at 1.1120, from 1.1137 before the release, USD/JPY traded at 103.85, from 103.67, and GBP/USD was at 1.2329, compared to the previous 1.2326.
U.S. futures pointed to a lower open on Wall Street. The blue-chip Dow futures dropped 0.03%, S&P 500 futures fell 0.12% and the Nasdaq 100 futures lost 0.13%.
Elsewhere, in the commodities market, gold futures traded at $1,257.00 a troy ounce, compared to $1,254.45 ahead of the data, while crude oil traded at $50.33 a barrel from $50.38 earlier.