U.S. Nonfarm Payrolls decrease 63,000 in February.

March 7, 2008 - Forex Economic News

Weaker than expected employment data sent the U.S. dollar lower against major currencies earlier today. The U.S. Department of Labor announced nonfarm payroll jobs decreased by 63,000 in February. This was the second staight month of negative job growth and marked the worst month in 5 years. Market forecasts expected the nonfarm payrolls to create approximately 20,000 jobs. The unemployment rate edged down a bit from 4.9 percent to 4.8 percent but was due to more people dropping out of the workforce as the civilian labor force dropped by 450,000 jobs from January to February. The manufacturing sector lost the most workers in February with a decrease of 52,000 jobs while construction lost 39,000 jobs and retail trade lost 34,000 jobs.

The euro reached another new all-time high against the dollar early Friday at 1.5459 dollars per one euro and the yen hit an eight year high against the greenback as it traded at 101.43 yen per dollar before retreating. The dollar rebounded after the U.S. Fed announced today that it will take steps to boost liquidity to the U.S. banking system which are feeling effects of a credit crunch.

Tags: Nonfarm payrolls, Employment, Unemployment rate, Department of Labor, euro, dollar, yen

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