Encouraging Jobs Report Beats Estimates

The Bureau of Labor Statistics released its Jobs Report for August this morning and the news was pretty good. Non-farm Payrolls rose by 1.37M in a bit of a comedown from July’s revised 1.73M, but still came in higher than the pre-release estimate of 1.35M. Revisions to the total of the last two months came to a 39k reduction. More startling was the drop in the Unemployment Rate to 8.4% from 10.2% versus a forecast of 9.8%. The Labor Force Participation Rate rose to 61.7% from 61.4% and that was pretty close to the estimate. Average Hourly Earnings also managed an unexpected boost of 0.4% when they were forecast to be unchanged. Year-over-year, that measure remained at a pretty stout 4.7%. The U6 Underemployment Rate also showed marked improvement by falling to 14.2% from 16.5%. Treasury prices are slightly lower this morning with the Ten-Year’s yield rising slightly to around 65 basis points while the Long Bond edges back toward 1.40%.