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19 Aug 2013
July Federal labor report not a ringing endorsement for September tapering
FXstreet.com (New York) - With markets and investors counting down to the September Fed meeting every labor report, data release, or economic indicator will be put under the microscope as the monetary easing tapering initiative looms.
Earlier today, the US Federal Bureau of labor statistics released its regional and statewide employment and unemployment summary. Having already digested the recent unemployment rate and Nonfarm payroll figures, releases such as these help fill the void between monthly data indicators.
50 shades of gray?
Indeed, the results were quite telling, as payrolls were reported to be up in 32 states in July, however the jobless rate also increased in 28 states respectively. By far the largest monthly increases were in California (+38k), Georgia (+31k), and Florida (+27k). Conversely, the biggest losses were seen across New Jersey, Nevada and Maryland, which all yielded around -10k respectively.
Briefing the regional data, the Western United States revealed the highest unemployment rate at an average of 7.9% with the Midwest and South both running at 7.3%. A particular standout underperformer was Nevada, which had the highest unemployment rate at 9.5% followed by Illinois (9.2%). The lowest figure belongs to North Dakota, spotting an impressive 3.0%. Of the overall country, only 17 states had a rate lower than the national average of 7.4%.
All eyes on September Nonfarm payrolls
In analyzing this report, there appears to be little that stands out as a game changer to the Feds agenda, nor is this readily welcome as optimistic news. Indeed, the US jobs market is still creeping along over, albeit at a glacial pace over recent months. Until the market starts seeing sustained 200k+ gains in Nonfarm payrolls and private sectors, the US is not going to buy into an improving jobless rate in big strides.
As such, September’s Nonfarm payrolls release is of paramount importance, perhaps serving as one of the most important and market impacting one’s ever. Fed Chairman Ben Bernanke needs this figure to be nothing short of robust to give any ounce of credibility to the tapering initiative, widely believed to begin in September.
Earlier today, the US Federal Bureau of labor statistics released its regional and statewide employment and unemployment summary. Having already digested the recent unemployment rate and Nonfarm payroll figures, releases such as these help fill the void between monthly data indicators.
50 shades of gray?
Indeed, the results were quite telling, as payrolls were reported to be up in 32 states in July, however the jobless rate also increased in 28 states respectively. By far the largest monthly increases were in California (+38k), Georgia (+31k), and Florida (+27k). Conversely, the biggest losses were seen across New Jersey, Nevada and Maryland, which all yielded around -10k respectively.
Briefing the regional data, the Western United States revealed the highest unemployment rate at an average of 7.9% with the Midwest and South both running at 7.3%. A particular standout underperformer was Nevada, which had the highest unemployment rate at 9.5% followed by Illinois (9.2%). The lowest figure belongs to North Dakota, spotting an impressive 3.0%. Of the overall country, only 17 states had a rate lower than the national average of 7.4%.
All eyes on September Nonfarm payrolls
In analyzing this report, there appears to be little that stands out as a game changer to the Feds agenda, nor is this readily welcome as optimistic news. Indeed, the US jobs market is still creeping along over, albeit at a glacial pace over recent months. Until the market starts seeing sustained 200k+ gains in Nonfarm payrolls and private sectors, the US is not going to buy into an improving jobless rate in big strides.
As such, September’s Nonfarm payrolls release is of paramount importance, perhaps serving as one of the most important and market impacting one’s ever. Fed Chairman Ben Bernanke needs this figure to be nothing short of robust to give any ounce of credibility to the tapering initiative, widely believed to begin in September.