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March 05, 2021 at 03:17PM
According to the latest monthly report, the US added 379k new jobs in February, almost twice as many as expected, after a 166k gain a month earlier (revised from 49k). The services sector added 513k, becoming the market’s growth driver amid sharp declines in the construction sector (-61k), probably due to weather.
At the same time, wages continue to rise, which is also a positive factor. Along with the increase in employment, the wage growth rate tends to tilt downward as less-skilled workers (laid off at the start of the pandemic) got jobs. But this isn’t the case yet. So far, wages are going up along with unemployment. Jobs soaring along with wages is a very pro-inflation factor.
On the macroeconomic side, today’s report is unequivocally healthy and important, as it has the potential to restore confidence in the economic recovery. This report is unlikely to stop the rise in long-term bond yields, but it might stop the sell-off in risky assets, including equities, commodities and metals. Increased demand for risk could curb the dollar rally that has become particularly extensive over the past week.
The FxPro Analyst Team
From: The FxPro Analyst Team https://fxpro.news/daily-economic-events/jobs-soaring-along-with-wages-cementing-bond-yield-jump-20210305/
Selected by fonecable.com
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