The current U.S major stumbling block; the deeply deteriorated labor market, may be healing but still at a slow pace and around the same levels…

Today, as every first Friday of a new month, the Bureau of Labor Statistics of the world's superpower will release it's well-known and vital Jobs Report; a report that traders and overall people were patiently waiting for since it gives a lucid hint of the current health of the economy, knowing regrettably that the U.S key sector; the labor market, remains deteriorated to continue on postponing a full recovery from the recession, although some clear signs of enhancement have been witnessed today, indicating only that a revival of this sector remains on taking place but at an extreme slow pace.

Accordingly today, the job losses may have slowed down as the change in Non Payrolls for January, which covers almost 80% of workers who produce the total GDP in the United States, in other words the total number of added or shed jobs in the world's leading economy, showed that the country added cheerfully 117,000 jobs in last month compared to a prior revised add of only 46 thousand from an add of 18 thousand while that the market projected only an add of 85 thousand workers.

As for the change in manufacturing Payrolls it added cheerfully 24 thousand workers in July compared to a prior revised add of only 11 thousand from an add of 6 thousand while that the market projected only an add of 10 thousand workers and the change in private payrolls added unexpectedly and gladly 15 thousand workers whereas the market predicted only an add of 113 thousand.

Not forgetting that ahead of today's report, hopes were already spread throughout jobs data and today's jobs reports was expected to be in some way cheerful after that the country's its ADP Employer Services showed that U.S companies were able to add more than forecasted employees cheerfully to payrolls last month; adding 114 thousand workers to payroll in July although the market only projected only an add of 100 thousand employees, which was in fact an early positive indicator of the jobs report.

Nevertheless, up till now the jobless rate continues on being highly crucial, proving the fact that the easing of the labor market deterioration is taking place but at a sluggish rate, knowing that the rate of people unemployed has optimistically plunged but very slightly to come in at 9.1 percent in July from 9.2 percent  , having therefore the ongoing depreciated labor market continuing on pushing back a stronger overall economical recovery from the enduring downside pressures of the worst crisis seen since WWII, as already forecasted by the Fed beige Book and throughout overall economic forecasts.

As for the Average Hourly Earnings, they showed a cheerful incline to the upside to come in around 0.4% from a prior reading of 0.0% in July and climbing up to 2.3 percent for the year ending July, while the Average Weekly Hours throughout the same period remain unchanged as already expected at 34.3, demonstrating that the overall pay growth may be improving but continues on being weak.

In fact throughout these hard times and weakened economical conditions it is a positive sign to watch better-than-forecasted job data but on a realistic state of mind these signs of enhancement are only few and minor, in other words the labor market is only reviving at a mediocre pace and continues on struggling deeply to revive from the recession although some employers are becoming a bet more encouraged to hire workers, having in mind that a true revival of this sector would not be witnessed except by the second quarter of next year.

Currency Pairs Update

 

EUR/USD is trading over 0.60% higher near 1.4180.
USD/JPY is trading over 0.95% lower near 78.4250.
GBP/USD is trading over 0.35% higher near 1.6319.
EUR/CHF is trading over 0.70% higher near 1.0884.
USD/CAD is trading over 0.55% lower near 0.9823.
AUD/USD is trading over 0.45% higher near 1.0503.

The U.S. Dollar Index is trading over 0.45% lower near 74.948.