Skeptical Markets Meet Higher-than-Expected US Jobs Report

The US jobs report for August showed a higher-than-expected increase in non-farm payrolls, but markets remain skeptical of the data. The non-farm payroll rose by 154,000 from July, beating expectations of a gain of just 15,000. However, the broader employed civilian labor force data shows a decrease of 133,000 from July and a drop of 621,000 from August last year.

The New York Fed's global supply chain pressure index rose in August to remain elevated, which is an unusual level since the Global Financial Crisis (GFC). Across the border, Canada reported a tougher labor market with employment declining by 41,700 in August. Meanwhile, Japanese household spending was weak in July, contracting at its sharpest pace since January 2024.

The global food prices rose to their highest since November 2022, with all food groups experiencing rises, including meat and dairy products. In Australia, more people are taking secondary employment, with a jump of 11.6% in part-time jobs on the year-ago basis.