Non Farm payrolls stronger than expected
6 July 2007
06.07.07
Non Farm payrolls stronger than expected
The US employment report showed a stronger than expected 132,000 new jobs created outside the agricultural sector for the month of June. The market had been expecting a figure around 123,000 and there was also an upward revision for May from 157,000 to 190,000. The unemployment rate remained steady at 4.5% (in line with expectations). The news will keep the Fed on high alert as a tight labour market could drive up inflation. Consequently, the futures market is now only pricing in a 6% chance of a US rate cut before the end of the calendar year.