US Nonfarm Payrolls drop by 80,000 in March. Unemployment rate rises. | CountingPips Forex & Currency Trading Blog

April 4, 2008 - Forex Economic News

US Nonfarm Payrolls drop by 80,000 in March. Unemployment rate rises.

U.S. Nonfarm Payrolls employment data was released today and the report showed that jobs fell more than expected in the month of March possibly signaling the U.S. economy is already in recession. The Department of Labor nonfarm payrolls report dropped by 80,000 jobs in March after decreasing by a revised 76,000 in February. The market forecasts had expected a decrease of approximately 50,000 jobs for March. The U.S. unemployment rate increased from 4.8 percent to 5.1 percent in March which is the highest recorded rate since September of 2005. March marks the third straight month of decline in nonfarm payroll employment and negative 80,000 jobs is the biggest monthly decline in 5 years.

Construction and manufacturing were the hardest hit by job losses in March as they lost 51,000 jobs and 48,000 jobs, respectively. Professional and business services also showed a notable decline of 35,000 jobs lost in the month. Health care grew by 23,000 jobs in March as education and health services combined to show 42,000 jobs gained in the month. Health care has increased by 363,000 jobs over the last 12 months. Food services also added jobs in March with a gain of 23,000 and has increased in the last 12 months by 288,000 jobs. Hourly earnings rose by 5 cents in March after February's rise of 6 cents. Average weekly earnings increased in March by 0.6 percent to $603.67.

The U.S. dollar has felt the effect of the dismal jobs report and has fallen against most major currencies today in the U.S. trading session. The EUR/USD saw an initial spike after the job report but has settled back down to trading at pre-report levels around 1.5715. Other trading rates after noon eastern standard time are: GBP/USD is trading under 2.00 at around 1.9936, USD/JPY is trading close to 102.02, USD/CHF is trading at approximately 1.007 and the Australian dollar has gained against the U.S. dollar as the AUD/USD is trading at approximately .92250.

Tags: nonfarm payrolls, non-farm, employment, unemployment rate, us dollar, recession, currency trading

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