US nonfarm payrolls beat forecasts, yet unemployment rises

US nonfarm payrolls beat forecasts, yet unemployment rises

The awaited jobs report showed that non-farm figures showed further progress in the pace of job creation, yet unemployment rate soared and pay growth missed forecasts.

Analysts predicted a job creation of 175,000 jobs, but the reading showed 222,000 jobs from an upwardly revised of 152,000 job-gain in May, which was 138,000 before revision.

Unemployment rate soared from a 16-year low of 4.3 percent to 4.4 percent, while analysts had predicted no change.

The average hourly earnings gained 0.2 percent last month, compared to both revised and predicted readings of 0.1 percent and 0.3 percent respectively. On the yearly basis, wage growth surged 2.5 percent, lower than forecasts of 2.7 percent. 

The dollar slipped to trade at 95.79 against a basket of major currencies, according to the dollar index, as of 12:38 GMT.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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