The labour market's the unadjusted number of people out of work increased to 133,754 from 133,256 in June. However the jobless rate remained at 3.1 percent, its lowest since October 2014. The seasonally adjusted unemployment rate remained at 3.3 percent for a third month. However, there news on job prospects disappointed as vacancies crept 0.2 percent lower on the month.
The underlying weakness of today's data is consistent with recent PMI surveys that have found an ongoing and significant decline in employment. Some aspects of domestic demand have shown more promising signs of late but business confidence is cautious and a real recovery in net hiring looks unlikely any time soon.
The unemployment rate measures the number of unemployed as a percentage of the labor force. The monthly report provides both raw and seasonally adjusted data; the latter are the more important for identifying short-term trends.
Like the employment data, unemployment data help to gauge the current state as well as the future direction of the economy. Employment data are categorized by sectors. This sector data can go a long way in helping investors determine in which economic sectors they intend to invest.
By tracking the jobs data, investors can sense the degree of tightness in the job market. If employment is tight it is a good bet that interest rates will rise and bond and stock prices will fall. In contrast, when job growth is slow or negative, then interest rates are likely to decline - boosting up bond and stock prices in the process.
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