Keep in mind, the U.S. employment data for September is the last Federal Reserve focus data before this year’s 3rd FOMC meeting on November 4th. So, the data this time around could influence the central bank’s decision in its announcement on Tapering.
If the data this time around is satisfactory, it may give the ‘green light’ to the Federal Reserve to downsize its asset purchases ($ 120 billion a month).
Based on labor market-related (NFP) data, the majority give a positive impression.
Below are the data that can affect the NFP reading this time:
🔰 The ADP employment sector is present above previous figures and forecasts.
🔰 The number of initial unemployment claims and continuing claims decreased during the August and September review periods.
🔰 The ISM business survey signaled employment growth in September with the manufacturing sector rising into growth territory but services sector recruitment falling slightly but the reading is still in expansion territory.
For that reason, the majority of the market expects a strong report to be present in the data this time with the employment rate projected to rise 490,000 while the unemployment rate falls to 5.1%.