Published, Mon, Oct 8, 2021 9:30 am EST

by Richard Cason,
@newsmmforex 
@nnmforex
in
 

Currency Analyst
NewsMovesMarketsForex

KEY TAKE AWAYS

  •  Second consecutive month U.S. Jobs Report Significantly Falls below Wall Street Experts Expectations, September NFP adds only 194K Jobs to the Labor Markets
  • Poor Job numbers U.S. Dollar weakens against basket of its currency rivals down – 0.18% on the News Breaking
  • Unemployment rate produces two consecutive months of improvement ticks lower  to 4.8% for the month of September 2021
  • Joblessness for Blacks  improves to 7.9%  for the Month of September 2021,  .5% drop from previous month at 8.4%
  • Positive Job Gains in Leisure and hospitality, transportation, retail trade employment remains up  by 2.5% and 5.7 million jobs since pre-pandemic February 2020

Non-farm payrolls only increased by 194,000 jobs  for the month of September 2021.  This is the second straight consecutive month that NFP numbers came in vastly under expectations. See the full in depth story – ( U.S. August Employment  Falters only adding 235,000 Jobs to the U.S. Economy.)  The majority of expert’s predicted that September Employment would increase by 500,000, considerably below the expected bar.

On the Flip side of the equation, the Bureau of Labor & Statistics did report notable job gains in the sectors of professional and business services, retail trade, and in transportation as well as warehousing. 

  Unemployment managed to show consistent improvement month over month trickling down by 0.4 percent to 4.8 percent; however, BLS did also reported that the Labor Participation rate displayed little movement at 61.6 percent in September an remains in a tight range of 61.4% to 61.7% since June 2020.  Among the Major worker groups, Black unemployment showed some improvement decreasing from 8.4% unemployment in the month of August to 7.9% in September.    

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

Market reactions to lackluster job report the U.S. Dollar index currently trading at 94.11 as of this writing, weakening across a broad currency board perspective CAD stronger than the USD trading at 1.2483 (USDUSD -0.54 down), CHF stronger than the Dollar trading at .9271 (USDCHF -0.14% down on the day. EUR Stronger than the U.S. Dollar trading at 1.1566 up .11% on the trading day.              

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

As of date there have been 710,000 deaths and 44.2 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 in September 13.2 percent of employed persons teleworked from home because of the coronavirus pandemic.  Also Five million people reported that they had been unable to work because their employer closed or lost business due to the pandemic.    

September 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 September employment data: Public education declined over the month.  
 
The employment sectors that showed decent improvements in the U.S.  Labor market were, leisure and hospitality increasing by 74k in September. Professional and business services added 60k jobs in September as well as achitectural and engineering services increased by +15,000.
 
The change in July 2021 NFP release employment revised up by +38,000 from +1,053,000 to +1,091,000 . August revised up 131,000 from +235k to +366K from the previous report.    

 

  •  Additionally, according to the United States Bureau of Labor Statistics ...Please click here to see the previous month 2021 Major Workers Group Data) …The unemployment rates for September 2021 Major Worker Groups..Adults men 4.7%, – slightly lower than August 2021 at 5.1%  Adult women 4.2% -slightly lower than Aug 2021 which was 4.8%,  Teenagers 11.5% – fraction higher than Aug 2021 rate of 11.2%, Whites 4.2% – tiny fraction lower than the previous month of  Aug 2021 4.5%, Blacks  7.9% –  lower than Aug 2021 8.4% rate, Asians 4.2%   lower than Aug 2021 rate of 4.6%, and Hispanics 6.3% -fraction lower than Aug 2021 rate of 6.4%.
 
 

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