July NFP Expected to Show Significant Increase in Employment
The upcoming Nonfarm Payrolls (NFP) report for July is expected to show a significant increase in employment, according to economists. After June's disappointing print of 57K, investors anticipate an NFP rise by 80K.
Deutsche Bank analysts project that the July payrolls report will show employment growth of '+65k, modestly above June's +57k reading,' with private payrolls expected to rise by '+65k after +49k previously.'
The Unemployment Rate is seen holding steady at 4.2%, while the annual wage inflation, as measured by the change in the Average Hourly Earnings (AHE), is projected to remain unchanged at 3.5%.
Market expectations currently see around 80,000 new jobs being added in July, and strategists at BNY Mellon note that they don't think the payrolls 'breakeven rate' needed to keep the unemployment rate from rising 'is much above 50,000 per month.'