Nonfarm payrolls fell short of expectations, market bets on rate hike pushed back to year-end

Odaily Planet Daily News The U.S. June nonfarm payrolls data showed that despite a decline in the unemployment rate, hiring activity slowed significantly in June, curbing the momentum that had emerged in job growth earlier this year. According to data released by the U.S. Bureau of Labor Statistics on Thursday, after downward revisions of 74,000 to the previous two months' data, nonfarm payrolls increased by 57,000 in June (market expectations were for 110,000).

The unemployment rate fell due to a sharp decline in the labor force participation rate—when the labor force participation rate declines, it means some people have left the labor market (e.g., given up job searching, retired early, returned to school). These individuals are no longer counted as "unemployed" and are no longer part of the "labor force," thus causing the unemployment rate to drop. After the data was released, spot gold briefly rallied, and the market also reduced bets on a Federal Reserve rate hike. The market has fully priced in expectations for a Fed rate hike in December, whereas previously expectations were for an October rate hike. (Jin Shi)