U.S NF Payroll Grew by Only 142K in August | Gold & Silver Inch Up

U.S. employment didn’t meet expectations with only 142K jobs were add, according to the Bureau of Labor Statistics. This figure was well below market expectations, which were at 222K and the ADP report showed that private non-farm payroll grew by 204K during August. According to the recent U.S. employment report, the main sectors that grew during August were in professional and business, services and in health care. The rate of unemployment inched down to 6.1%. Gold and silver edged up.

The chart below presents the revised figures of the added number of non-farm employees in the labor market in past years (up to August 2014). The non-farm payroll in July and June were revised down by a total of 28K than previously estimated. Even though this news came short of the projections, the market’s reaction was modest to this news.

U.S. Nonfarm payroll employment up to 2014  Sep 5

In August, the rate of U.S. unemployment edged down by 0.1 percentage points to 6.1%. The current unemployment rate is 1.2 percent points lower than its rate in August 2013.

Nonetheless, the number of unemployed persons (9.6 million) slipped by 80K in August compared to the previous month. A closer look reveals that the civilian labor force rose by 206K. Despite the modest drop in number of unemployed and rise in the number of people participating in the labor force the participation rate inched down – the participation rate inched down to 62.8%.

Following this news, the USD/Yen exchange rate slipped; crude oil price traded down; the U.S stock market indexes rallied; gold and silver prices inched up.

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