What has changed after the US NFP report?
How has job search activity affected unemployment in 2024?
In 2024, job search activity has contributed to the increase in unemployment rate. New entrants and re-entrants into the job market have led to a rise in unemployment, while employment levels have remained relatively stable. This indicates that the labor market is experiencing a shift in dynamics rather than a widespread economic downturn.
What was the 3-month moving average of employment gains?
The 3-month moving average of employment gains fell to 177K, which is the lowest since early 2021. This indicates a relatively soft report, but with some positive aspects such as wage growth and prime-working age employment increase.
How did the unemployment rate change in the latest report?
The latest report shows that the unemployment rate rose to 4.1%, a 2-1/2-year high, indicating a gradual ebbing in the labor market. However, this increase in unemployment is primarily due to new entrants and re-entrants rather than a rise in layoffs.