US non-farm payrolls beat forecasts at 248,000, jobless rate falls unexpectedly
US non-farm payrolls rose to beat forecasts and the jobless rate fell unexpectedly, potentially adding to speculation of an interest rate hike.
Employers added 248,000 jobs in September, more than the 215,000 predicted by analysts, compared to 180,000 a month earlier. The unemployment rate fell to 5.9% from 6.1%, surprising the market which had projected it to remain unchanged.
The estimates for the previous two month's gains in non-farm payrolls were revised higher by a combined 65,000.
Average hourly earnings, however, eased back with a 2% increase in September, compared to a 2.1% rise in August. Economists had pencilled in a 2.2% gain.
The data is an important economic indicator for the Federal Reserve as it considers when to raise interest rates.
“The US economy is steadily improving month by month and investors have been readying themselves what’s coming in the form of higher interest rates, as the dollar continues to trade higher striving for a new equilibrium,” said Angus Campbell, senior analyst at FXPro.
“Today’s number of 248,000 is well above the six month average figure around 180,000 and higher than the one month average of 219,000 so it comes as little surprise to see the initial reaction of dollar strength sending euro/dollar and GDP/USD lower, with the latter now heading to test the 1.600 level and at its lowest since November 2013.”