.comment-link {margin-left:.6em;}


Economic Data (USA)

Friday, September 01, 2006

Employment Situation Report for August, 2006

The Employment Situation report for August, 2006 was released by The Department of Labor's Bureau of Labor Statistics this morning:

Average Hourly Earnings (month-to-month change)
Predicted: +0.3%
Actual: +0.1%

Non-farm Payrolls (month-to-month change)
Predicted: +130K
Actual: +128K

Average Workweek
Predicted: 33.9 hrs
Actual: 33.8 hrs

Unemployment Rate
Predicted: 4.7%
Actual: 4.7%

Economist, academics, bankers and investors pay very close attention to the monthly Employment Situation report as it offers penetrating insight as to the current and near-future state of the overall U.S. economy. If a) Americans are earning more money, b) unemployment is low and c) the economy is creating new jobs, this typically translates to more money being pumped into the economy (and vice versa.)

If the Employment Situation report indicates wage inflation, this can lead to an increased likelihood that the Fed will raise interest rates at the next FOMC meeting; consequently, if the Fed raises interest rates, then stock and bond prices may take a hit, because the increased cost of borrowing typically translates to less profits for the banking sector (higher mortgage rates = a slower mortgage / mortgage refinance market) and less consumer spending in general (credit card rates go up, etc.)

The "predicted" figure is what economists and Wall Street forecasters were expecting, while the "actual" is the actual or real figure.

Click here to view the full Department of Labor report.



Post a Comment

Links to this post:

Create a Link

<< Home

Entire Website © 2018 FedPrimeRate.comSM

This website is neither affiliated nor associated with The United States Federal Reserve in any way.
Information in this website is provided for educational purposes only. The owners of this website
make no warranties with respect to any and all content contained within this website. Consult a
financial professional before making important decisions related to any investment or loan
product, including, but not limited to, business loans, personal loans, education loans, first
or second mortgages, credit cards, car loans or any type of insurance.