Published, Mon, Sept 8, 2021 7:30 am EST

 

by Richard Cason,
@newsmmforex 
@nnmforex
in
 

Currency Analyst
NewsMovesMarketsForex

KEY TAKE AWAYS

  •  August NFP results of 235,000 Jobs added to the U,S. economy significantly lower than expectations of 735,000
    Poor Job numbers U.S. Dollar takes a hit weakens against basket of its currency rivals
    Unemployment slightly lowers to 5.3%, despite Teenagers and Blacks  joblessness elevating to 11.2% and 8.8%
    Leisure and hospitality employment down by 1.7 million jobs since pre-pandemic February 2020

Non-farm payrolls only increased by 235,000 jobs  for the month of August 2021.  This was quite disappointing numbers compared to July’s NFP release of over one million new Jobs added to the U.S. Labor Markets.  The majority of expert’s predicted that August Employment would increase by 735,000, descending way short of expectations.

 Unemployment manage to tick down by 0.2 percent to 5.3 percent; however among most groups, Teenagers and Black unemployment increased to 11.2% and 8.8% respectively.  These numbers are almost double compared to employment rates of Whites and Asians.  Jobless rates for Whites 5.4% and Asians 4.6% for the month of August 2021.

The hospitality and leisure, tourism experienced significant losses despite a robust increase in the previous month of July 2021. There were some sectors that added jobs in the month of August such which were: professional and business services, transportation and warehousing, manufacturing.

 Due to the poor jobs numbers the U.S. Dollar index traded as low as 91.941 and was last down 0.231% at 92.014. The Dollar has been losing positive momentum as of late due to the uncertainty of the FOMC decision on  possibly scaling back the stimulus initiatives as well as monetary bond asset purchasing program.   The principle catalyst influencing these concerns are consumer inflation hikes and waning U.S. jobs growth in various sectors in the economy.

 (COVID Delta variant) Impact on the U.S. Economy

As of date there have been 648,000 deaths and 40 million infection cases reported in the U.S. related directly to the Coronavirus pandemic.  The high contagious delta strain first showed up in India which quickly spread to the United States carrying a severe and devastating impact on the infected.

According to the Bureau of Labor and Statistics more than 5.5 million people in the month of August were jobless due to employer closed or lost business due to the pandemic.   Additionally, 1.5 million people were prevented from looking for work due to the pandemic. Professional and business service have been down by 468,000 since February of 2020.

August 2021 Jobs report

According to the U.S. BLS  the sectors that suffered and incurred significant job losses throughout the Labor markets are reflected in August employment data: leisure and hospitality incurred a major hit declining 1.7 million since February 2020.
 
On a more positive note the U.S.  Labor market did see some moderate gains in the professional and business services which increased by 74,000 of new employment in August 2021.
 
Architectural and engineering services consulting  gained +19 000 jobs, employment increased +10,000 in computer systems design and related services,  job gains were seen in private education of +40,000, as well as decline in local education of down –6,000.
 
 Most Wall Street Economist assumptions were extremely off the mark predicting  a positive net increase within the U.S. Jobs market survey.  These experts predicted that the economy would rise by  750 thousand jobs for the month of August 2021.
 
The change in June 2021 NFP release employment revised up by +24,000 from +938,000 to 962K . July revised up 134,000 from the previous report.  See the full story of previous January 2021 NFP numbers;  

 

  •  Additionally, according to the United States Bureau of Labor Statistics ...Please click here to see the previous Jan 2021 Major Workers Group Data) …The unemployment rates for August Major Worker Groups..Adults men 5.1%, -slightly higher than July 2021 at 5.4  Adult women 4.8% -slightly lower than July 2021 which was 5.0%,  Teenagers 11.2% -significantly higher than July 2021 rate of 9.6%, Whites 4.5% – lower than the previous month of  July 2021 4.8%, Blacks  8.4% – slightly higher than July 2021 8.2% rate, Asians 4.6%   lower than July 2021 rate of 5.3%, and Hispanics 6.4% -slightly lower than July 2021 rate of 6.6%.
 
 

 Reference:   U.S. Bureau of Labor and Statistics. (2020). Employment Situation Summary Retrieved                     from   https://www.bls.gov/news.release/empsit.nr0.