U.S. employment rose 209K, according to the Bureau of Labor Statistics. This figure came short of market expectations as the ADP report showed that private non-farm payroll grew by 218K during July. According to the latest U.S. employment report, the main sectors that grew during July were in professional and business services, manufacturing, retail trade, and construction. The rate of unemployment edged up to 6.2%. Gold and silver bounced back.
The chart below shows the revised figures of the added number of non-farm employees in the labor market in past years (up to July 2014). The non-farm payroll in June and May were revised up by a total of 15K than previously estimated. Even though this news came short of the projections, this is still a fair increase in employment.
In July, the rate of U.S. unemployment edged up by 0.1 percentage points to 6.2%. The current unemployment rate is 1.2 percent points lower than its rate in July 2013.
Nonetheless, the number of unemployed persons (9.7 million) rose by 197K in July compared to the previous month. A closer look reveals that the civilian labor force also rose by 329K. This could suggest that the rise in number of unemployed was partly due to the rise in the number of people participating in the labor force. After all, the participation rate inched up to 62.9%.
Following this news, the USD/Yen exchange rate fell; crude oil price traded up; the U.S stock market indexes also slipped; gold and silver prices bounced back.
For further reading: