• Prior +187K (revised to +157K)
  • Two-month net revision -110K vs -49K prior
  • Unemployment rate 3.8% vs 3.5% expected
  • Prior unemployment rate 3.5%
  • Participation rate 62.8% vs 62.6% prior
  • U6 underemployment rate 7.1% vs 6.7% prior
  • Average hourly earnings +0.2% m/m vs +0.3% expected
  • Average hourly earnings 4.3% y/y vs +4.4% expected
  • Average weekly hours 34.4 vs 34.3 expected
  • Change in private payrolls +179K vs +150K expected
  • Change in manufacturing payrolls +16K vs 0K expected
  • Household survey +222K vs +268K prior
  • Birth-death adjustment +103K vs +280K prior

The headline sees non-farm payrolls barely come in as a beat but the most notable detail is the jump higher in the unemployment rate from 3.5% in July to 3.8% in August. That said, a part of that owes to a jump in the participation rate to 62.8% (previously 62.6%) as well so there is that to consider.

The two-month net revision is also not a bright spot and it adds to the streak of the BLS revising lower every single non-farm payrolls print for this year so far. Besides that, the slightly softer wages data than estimated also points to more breathing room for the Fed to pause.

The initial reaction sees the dollar move lower alongside Treasury yields with USD/JPY now down 0.5% to 144.80. Meanwhile, equities are jumping up with S&P 500 futures now up 28 points, or 0.6%, on the day.