Expectations Are High for a Strong NFP Report on Friday

Expectations Are High for a Strong NFP Report on Friday

Friday’s highly anticipated non-farm jobs report comes out at a somewhat awkward time; For the first time in six years, the April employment report falls on Good Friday, which means many major markets will be closed.

As a result, readers who trade the forex or bond markets at their desks may see less liquidity than usual and the post-release movement may stop earlier than usual as traders who watch the markets seem to leave early to enjoy a long duty holiday weekend.

Interestingly, economists expect strong numbers: job growth is expected at 652,000 (a potential six-month high), and the unemployment rate will fall 2 ticks to 6.0%. At the same time, it is expected that the always important indicator of the average hourly profit will rise by only 0.1% m / m, which suggests that inflationary pressures are still far away.
Jobless Rate Undoubtedly Overstated
On the surface, the above results could be another boon for the US economy and for the Biden presidency as eurozone countries struggle to meet their vaccine goals. On the other hand, the participation rate has remained stable since July, despite the upward trend in the number of jobs, which is likely to provide some warning that misclassification errors could underestimate real unemployment rates.

It is likely that millions of people are not actively looking for work and therefore are not considered unemployed, as uncertainty about the development of the virus, the disappearance of job opportunities, and virtual learning have forced some parents to stay at home, probably drove this group of people out of the workforce.

Therefore, the overall unemployment rate may not be a complete benchmark for the trajectory of the labor market, partly explaining the Fed’s decision to keep accommodative policies at current levels until they achieve their goal of full employment.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.