The swing in the labor market is ever-present as only 162,000 non-farm payrolls were added in July. This missed expectations of 188,000 added jobs. This was the lowest addition since March, and the previous two months of jobs were revised downward. The unemployment rate ticked down to 7.4 percent, reported the Department of Labor.
The reduction in payrolls may suggest that companies are happy with their level of staffing, and their current staffing can meet current demand levels.
The retail sector hired the most in eight months adding 47,000 employees.
According to Ryan Sweet, economist at Moody’s Analytics, “The impact on employment from the sequestration is still to work its way through the economy.” And, “conditions are falling into place for stronger growth going forward. As long as demand grows, businesses will need to increase production and hiring.” He also mentioned that the job market is still challenging.
Private employment added 161,000 jobs in July.
The FOMC minutes on Wednesday noted : “Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated.”
The Federal Reserve said it will maintain its $85 billion in monthly bond buying. “Economic growth will pick up from its recent pace and the unemployment rate will gradually decline.” In the same token, the economy has picked up slightly and July’s figure was lower than forecasted and previous months revised down. “Operation Endless Balance Sheet” continues.
The dollar hit the target of the 200 EMA, but with the lower than expected jobs numbers price action was rejected for higher territory. Down .43 percent, the dollar index is currently trading at 82.07.