U.S. non-agricultural approaching one million data in July fully exceeded expectations, pulling S&P and Dow to continue to refresh high

The Financial Associated Press (Shanghai, editor Shi Zhengcheng) reported that on Friday morning local time, the US Department of Labor released the latest non-agricultural report, and all the data significantly exceeded expectations.

(Source: US Department of Labor) According to official disclosures, non-agricultural employment increased by 943,000 in July, which was expected by the market to be 858,000; the unemployment rate also fell to an unexpectedly 5.4%, and the average hourly income rose 0.4%. In addition, the Ministry of Labor also revised up the non-agricultural sector from 850,000 to 938,000 in June, and the employment data for May was also revised up by 31,000 to 614,000. The labor participation rate rebounded to 61.7%, the highest level since March 2020. Matt Weller, head of global research at Jiasheng Group, previously wrote that if the employment report is strong, then the Fed is expected to announce a reduction in its balance sheet at the Jackson Hole conference later this month.

(Source: tradingeconomics) Including Fed Chairman Powell and Board Member Branard have stated that they need to see economic recovery before exiting QE, and this week, another Fed board member Waller also stated that if the employment data continues to improve in these two months , He will also turn to support plans to reduce bond purchases.

Robert Frick, business economist at Navy Federal Credit Union, said that this is not only a strong employment report in all aspects, but also indicates that more good things will happen in the future.

Judging from the increase in non-agricultural subdivisions in July, the service industry’s largest employment in the leisure reception sector added 380,000 jobs, two-thirds of which came from the food and beverage industry; the education industry added a total of 261,000 people, but the virus has changed The ravages also brought additional uncertainty to the fall semester; other jobs such as occupation and business services, transportation and storage, healthcare and manufacturing all added more than 10,000 jobs, but the retail trade industry bucked the trend and reduced 6,000 jobs, mainly It was dragged down by building materials and gardening supply stores (-34,000 people).

On the whole, a total of 16.7 million new jobs have been added in the United States since April last year, but there is still a decline of 5.7 million from the level of February last year, when the unemployment rate was 3.7%.

In terms of income data that is more closely related to inflation, the average hourly wages of all private sector employees and manufacturing/non-management employees in July rose by 11 cents to 30.54 and 25.83 US dollars, the fourth consecutive month of increases, reflecting continued Labor tensions. Employment website Indeed predicts that as of July 16, there are a total of 9.8 million job vacancies across the United States, but only 8.7 million unemployed workers. In a survey of 5,000 unemployed people, although the number of people who refused to go out to work due to health reasons such as the epidemic has declined, more and more people said that they still have surplus on hand and are not in a hurry to go out to find work.

(Source: Non-agricultural report) In the stock market, strong non-agricultural data also boosted the concept of economic recovery. On Friday, the Dow and the S&P 500 index opened higher, and are expected to work together to set a new record high. Individual stocks in the financial, energy, shipping, and tourism industries generally rose, and technology stocks collectively weakened.