For the First Time in 11 Months, U.S. Non-Farm Payrolls Drop Unexpectedly by 3.5% Below Projected Figures – According to Investing.com

Investing.com – Data released on Friday (7th) showed that the number of new non-farm payrolls in the United States fell sharply in March from February, while 11 jobs were lower than expected for the first time.

According to U.S. labor statistics, it was 236,000, the lowest increase since December 2020, and lower than market expectations of 239,000. It was also lower than expected for the first time since March last year. It was higher than market expectations for 11 consecutive months. . Meanwhile, new jobs were down sharply from 326,000 in the previous month.

The surprise fell to 3.5% from 3.6%, missing market expectations of 3.6%.

In line with expectations, it rose to 0.3% from 0.2%; it fell to 4.2% from 4.6% more than expected, and was expected to fall to 4.3%, the lowest level since June 2021.

After the release of the data, the U.S. dollar, which measures the trend of the U.S. dollar against six trade-weighted major currencies, jumped from around 101.650, once approaching 102 points, reaching as high as 101.980, before falling back to 101.862 by the time of writing, up 0.32% from yesterday’s close.

U.S. stock index futures turned higher, with blue-chip stocks up 71.7 points, or 0.21%, 10.1 points, or about 0.25%, and technology stocks up 3.7 points, or 0.03%.

U.S. Treasury yields rose, with benchmark U.S. bond yields at 3.342%, compared to 3.316% before the data; 3.9243%, which is more sensitive to short-term interest rate expectations, compared to 3.8745% before the data.

On the other hand, expectations that the Fed will raise rates by 25 basis points at its May meeting rose slightly, from 55.1% to 56.8% following the data, according to the CME Fed Monitor. The probability of doing nothing fell slightly from 44.9 percent to 43.2 percent.

Market commentaries said that the increase in expectations for a 25-point rate hike was mainly due to the fact that people thought the data would be even worse, especially the weak performance of JOLT job vacancies, initial jobless claims and ISM manufacturing PMI announced earlier this week.