The jobs report is out, and it’s a big flop. Missed by a long shot. Markets are on the move.
U.S. companies added just 142,000 new payrolls in August, missing expectations for a gain of 230,000.
Furthermore – The July jobs report was also revised up slightly, to 212,000 from 209,000, while June’s report was revised down to 267,000 from 298,000.
The number of long-term unemployed (those jobless for 27 weeks or more) declined by 192,000 to 3.0 million in August. These individuals accounted for 31.2% of the unemployed.
The most dramatic move is coming from the bond market where the yield on the 10-year Treasury just dropped from 2.47% to 2.40% before inching back up to 2.41 – 2.42.
As expected however, the unemployment rate ticked down to 6.1% from 6.2% in July. This came as the labor force participation rate slipped to 62.8% from 62.9%.
The number of employees out of work for more than 27 weeks, or those long-term unemployed, also fell in August to below three million for the first time since the financial crisis.