Unemployment Rate Falls as Jobs Count Misses

The Bureau of Labor Statistics announced this morning that the Unemployment Rate fell to 7.9% last month while the 661k addition to Non-Farm Payrolls was less than the 859k gain that was forecast. The Unemployment Rate was only expected to fall to 8.2%, but was helped by a 0.3% drop in the Labor Force Participation Rate. Coming in at 61.4%, it was expected to rise to 61.9%. Last month’s job count of 1.37M was revised to 1.49M. The Manufacturing sector outperformed with a pick-up of 66k new jobs versus an estimate of just 35k. Leisure and Hospitality was also a big gainer with the addition of 318k new jobs. Average Hourly Earnings posted a rise of just 0.1% taking the year-over-year pace to 4.7% from last month’s revised 4.6%. Average Weekly Hours also grew slightly to 34.7 from 34.6.

This morning’s other big headline regarding the President’s contraction of COVID-19 has equity indices in the red while Treasury prices are rising. The Ten-Year is currently around 66 basis points while the Long Bond is a nudge over 1.40%. Gold has also rallied a touch to $1,910 while crude oil is down another $1 or so to $37.35.