Highlights of the July US jobs report

  • Prior was 222K (revised to 231K)
  • Two-month net revision +2K
  • Private payrolls +205K vs +180K exp
  • Manufacturing payrolls +16K vs +5K exp
  • Unemployment rate 4.3% vs 4.3% exp
  • Participation rate 62.9% vs 62.8% prior
  • Underemployment rate 8.6% vs 8.6% prior

Earnings:

  • Average hourly earnings +0.3% vs +0.3% m/m expected
  • Prior average hourly earnings +0.2% m/m
  • Average hourly earnings 2.5% vs +2.4% y/y
  • Prior average hourly earnings +2.5% y/y
  • Average weekly hours 34.5 vs 34.5 expected

USD/JPY was at 110.10 in the moments before the data. The average hourly numbers look decent with the y/y number beating the consensus.

The headline is also strong and steady unemployment despite the tick higher in participation is a good sign.

The Fed hawks are going to feel good about this.