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The United States has reportedly added 311,000 jobs during the month of February, according to the Bureau of Labor Statistics’ most recent data on nonfarm payrolls. This is relatively far more than the 225,000 jobs that economists had predicted would be added; although being lower than the previously reported 517,000 jobs in January. The reported unemployment rate has increased to 3.6% which is the lowest level since May 1969.
Recession On Hold For Now?
Despite the massive wave of layoffs that affected some of the biggest firms in the country, the unemployment rate surprisingly dropped and more jobs were added back to the labor market than anticipated in January. These changes contributed to indications that the American economy might not be slowing down any time soon and the Federal Reserve could continue with its 25 bps rate hike — as opposed to the growing speculation of a 50 bps rate hike following the recent Fed chair testimony at the U.S. Senate Hearing.
FED SWAPS DOWNGRADE ODDS OF 50BP MARCH RATE HIKE TO UNDER 50%
— *Walter Bloomberg (@DeItaone) March 10, 2023
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The leisure and hospitality sector was responsible for the growth of most jobs, by generating nearly 105,000 new positions. According to the report, retail employment increased by roughly 50,000, while government employment increased by 46,000. However, a 0.2% month-over-month increase in wages represents the weakest increase in wages since February 2022.
Market Reaction
Markets across sectors witnessed a significant uptick in price as the nonfarm payroll data was released. The announcement caused a brief spike in the price of Bitcoin (BTC), which resulted in an increase of 1.13% over the past 30 minutes, in contrast to a decline of 7.42% over the course of the previous 24 hours. At the time of writing, BTC is currently trading at $20,037.
The price of Ethereum (ETH), on the other hand, is presently exchanging hands at $1,407, reporting a gain of 1.04% over the past 30 minutes while registering a notable drop of 8.32% over the last 24 hours. In response to the news, major altcoins such as XRP, DOGE and BNB and also experienced a surge in value.
Moreover, the U.S. stock index futures turned positive in volatile trading following the release of the jobs data. Futures contracts for the S&P 500 increased by 0.37%, while those for the Nasdaq-100 climbed 0.6%. The Dow Jones futures also recorded an increase of 12 points which translates to a gain of 0.04%.
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