US April Shock: The Non-farm Payrolls and the Unemployment Rate

US April Shock: The Non-farm Payrolls and the Unemployment Rate

A historic day for the American economy

The Labor Department's latest report is the worst ever released since World War II.

The pandemic's impact was more powerful than everyone expected. In just one month, more than 20 million jobs from the non-farm sectors disappeared and made the unemployment rate reach a heinous 14.7%. The current numbers beat the World War II record set at 10.8%, and the Great Recession in 2009, when it was 10%.

The pandemic managed to reverse a job market that just two months ago was on high-horses. February had a payroll gain of 230,000. But everything took a turn for the worse when the March report showed a loss of more than 800,000 payrolls. Analysts believe it will take several years for the economy to recover, and the unemployment rate to return to 3.5%.

On the other side, average hourly earnings gained 8% from the same period last year.

The market opened higher: USA30 rose almost 1%, USA500 and TECH100 gained 1% each.

See the difference when trading with CAPEX.com by accessing elite features:

  • Stellar custom service
  • Powerful WebTrader platform and mobile app
  • High-end integrated trading tools
  • Full license and regulation from top regulators

Sources: forexfactory.com, cnbc.com, washingtonpost.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.