What to look for in Friday’s report on employment

What to look for in Friday’s report on employment in the US?

The first nine years
US interest rate increase
central bank may already occur at
next month, and the Federal Reserve
system emphasizes that their decision will depend on the state
labor market.
This means that the next reports
Employment – one of them will be released as
Just today – it is very important for the market.
“If you had asked me, on a scale from
one to ten, how important data
employment, I would have said that
all 10, – says Kathleen Bosthansik,
an economist at Oxford Economics USA Inc. in NYC.
– The next two – generally ten to
two advantages. ” Here’s what the economists
expect to see in a fresh report.

Employers, on
analysts, was added 225 thousand. jobs
in July, while it was in the past month
an increase of 223 thousand. This year’s figure
It averaged 208 thousand. While these numbers are lower
than last year, when we saw
an impressive rate of growth of the labor market
(Added 260 thousand. Jobs), but
Now it will be enough to
to support the sluggish labor market. And for the Fed
it is evidence of the continuation
the general trend.

"Market more
believe in the probability of a rate hike
In September, if we get a figure of 200 thousand.
and more – says Bosthansik. – If
data show less than 200 thousand., then we will see
backlash: start
discussions that will take an increase in December
or even the next year".

The pace of wage growth
board is even more important than the discussion around
the timing of rate increases, says Michael
Gapen, chief economist at Barclays Plc.
Average hourly earnings are expected to
up to 0.2% in July compared with
index-June. In annual terms,
wage growth is expected at 2.3%. This data
will be in the attention of investors after
how the market saw last week
gloomy data index value of working
forces. “We have a lot of evidence
in recent years, that job growth
Places usually continues to improve,
– says Gapen. – It can talk
that the labor market will lead to a
wage inflation and a general
price inflation".

Another important signal
today will be any change in the level of
unemployment, which is projected to
will remain at 5.3% in July. The lower
It will score, the more confidence
it would give the Federal Reserve – they want to see
index at the level of 5-5,2%.

We wait for the reports and
let’s see how justified
expectations of experts and how to react to the world markets.

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