U.S NF Payroll Spike by 321K in November | Gold & Silver Tumble

U.S. employment sharply increase much higher than expected with 321K additional jobs, based on the Bureau of Labor Statistics. This figure was higher than market expectations, which were at 231K and the ADP report showed that private non-farm payroll added 208K jobs during November. According to the recent U.S. employment report, the main sectors that grew in professional and business services, retail trade, health care, and manufacturing. The rate of unemployment didn’t change at 5.8%. Gold and silver tumble down.  

The chart below shows the revised figures of the added number of non-farm employees in the labor market in past years (up to November 2014). The non-farm payroll in October and September were slightly revised up by a total of 44K than previously estimated. This revision comes after the October report initially showed a gain of 214K jobs.

U.S. Nonfarm payroll employment up to 2014  Novermber 7

In November, the rate of U.S. unemployment remained unchanged at 5.8%. The current unemployment rate is 1.2 percent points lower than its rate in November 2013.

But the number of unemployed persons (9.110 million) rose by 115K in November compared to the previous month. A closer look reveals that the civilian labor force also grew by 119K. So the modest gain in number of unemployed and the rise in the number of people participating in the labor force resulted in the participation rate remaining flat at 62.8%.

Following this news, the U.S dollar rallied against the Euro and Yen; crude oil price is currently falling by almost a dollar; the U.S stock market indexes are slightly rising; gold and silver prices are sharply falling. Since the labor report was positive and came higher than expected, the market has reacted with a drop in gold and silver and recovery of the USD.

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