The American Jobs Report Doesn’t Indicate Any Direction

The most expected indicator of the American labour market failed to bring the expected numbers. Thus, the Non-Farm Payroll was reported at the value of 148k new jobs created last month. Taking in consideration the last period of time, economists seem to become reluctant when it comes to consider the NFP in the general picture of the economy. At all events, 148 000 new jobs created doesn’t say about the economy that is strengthening but it rather hardly keeping at a pace close to the normal one.

The unemployment rate positively surprised reaching 7.2%, a value last time hit five years ago. Still, the unemployment rate is far from the Federal Reserve’s target of 6.5% required to start increasing the interest rate. All this together with the latest episode consisting of the 2 weeks of government shutdown and the unsolved federal debt are clearly indicating that the American economy is not closing the year on an optimistic tone. Investors are choosing as safe investments the Euro, gold and stocks. Moreover, economists keep postponing the moment of tapering and the 4th quarter report is expected to show a shrink of the economy with 0.25%.

 

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