🇺🇸Cable FX Macro Weekly Note: Sept. Non Farm Payrolls

**As seen in Risk In The Week report 09/30/22, subscribe at cablefxm.co.uk/reports

The U.S. economy added 315K jobs in August, this was higher than the consensus forecast of 298K and a slower pace than the previous 526K. Manufacturing jobs increased by 22K, this was slower than in July, June, and almost half of gains seen a year ago. Education and business services posted the largest gains in the month, at almost 70K each. Construction added 16K jobs, a slowdown from the previous 24K, however, the interest rate sensitive sector continue to grow. Leisure had its slowest month in more than a year, adding 7k jobs. Average hourly earnings slowed to 0.3% from 0.5% M/m, earnings were unchanged at 5.2% Y/y. The three-month average now sits at 378K, however, the monthly pace is set to slowdown as previous job additions are not sustainable. The unemployment rate ticked higher to 3.7% from 3.5%. This is not to say that the labour market less hot, tight conditions remain in place as the unemployment rate is still at relatively low levels and activity surveys show an uptick in employment subcomponents. Analysts at CIBC note improvements in jobless claims and the Conference Board’s labor differential measure, they also say that the unemployment rate could stick to 3.7% as we might see an increase in the participation rate. CIBC calls for higher interest rates from the Fed to slowdown the pace of hiring further.