Spark Global Limited reports:
ADP employment data for July was revised from 692,000 to 680,000, the lowest since February.
After the data, the COMEX most active gold futures contract traded 2,471 lots in one minute at 20:15 Beijing time on August 4, with a total contract value of $450 million.
Spot gold short – term pull up, as high as $1825.90; The DOLLAR index (92.2651, -0.0174, -0.02%) fell short term, breaking the 92 mark; Us Treasury yields were lower.
In terms of specific data, the ADP report shows:
Construction employment rose by 1,000 in July, compared with 47,000 in June
Manufacturing employment increased by 8,000 in July after rising by 19,000 in June
Trade/transportation/utilities employment rose 36,000 in July, compared with 62,000 in June
Employment in financial services increased by 9,000 in July after rising by 10,000 in June
Professional/business services employment increased by 54,000 in July, compared with 53,000 in June
By component, leisure and hospitality was the fastest growing sector for the fifth month in a row, but overall, gains slowed, said ADP Employment Data Inc. ‘s chief economist. The recovery in the Labour market continues to show uneven progress. The July survey showed a marked slowdown in job growth from the second quarter.
Us job growth has slowed markedly
People are returning to the Labour market, but not as quickly as businesses would like. The pace of hiring slowed in July, with employment in a range of industries rising 1.1 per cent from mid-June to mid-July, half the 2 per cent growth rate seen in the May to June period, according to payroll-research firm Data.
Labor shortages have become one of the biggest headwinds to the economic recovery, with the Labor Department’s widest measure of labor costs, the Employment Cost Index, rising for two straight quarters and at its fastest year-to-year pace since the fourth quarter of 2018.
With nearly 6 million jobs still to come back, half of the states recently ended additional federal benefits in an attempt to encourage people to return to work. The labor shortage is expected to ease when schools reopen in the fall, though the U.S. epidemic has picked up momentum in recent weeks, creating uncertainty.
The United States has lost 611,791 COVID-19 cases as of Wednesday local time, according to the CENTERS for Disease Control and Prevention. The seven-day average of new COVID-19 cases in the United States has surpassed last summer’s peak.
The United States has seen mass unemployment due to poor control of the epidemic. The U.S. government first issued a “renter protection order” in September last year to prevent landlords from evicting tenants who couldn’t pay their rent during the pandemic, leaving more people out and spreading the disease. The US Centers for Disease Control and Prevention (CDC) issued a statement on August 3 local time, extending the eviction order for tenants until October 3.
Fed officials have expressed concern about the labor market
On Tuesday, Federal Reserve Governor Richard Bowman said that while recent job creation is encouraging, overall employment remains below pre-outbreak levels and that many people still face difficult choices between jobs and job changes, so it will take time for some people to re-enter the labor market.
San Francisco Fed President Darlene Daley made a similar point, noting that nearly 10 million americans are still unemployed and many more are currently sitting on the sidelines of the labor market.
That’s not a good harbinger for Friday’s nonfarm report, according to financial website Forexlive. If the BLS report remains below expectations, the Fed’s “tapering” talk could taper off.
Separately, us initial jobless claims for the week ended July 31 will be released tomorrow night, compared to 400,000 vs. 384,000 expected.