Investing.com - The U.S monthly report showed that employment unexpectedly declined in September, the unemployment rate ticked lower and wage inflation rose more than expected, according to official data released on Friday.
Non-farm payrolls declined by 33,000 in September, compared to the rise of 169,000 a month earlier that was revised up from the initial increase of 156,000. The data missed the consensus estimate for the creation of 90,000 jobs.
The jobless rate unexpectedly ticked down to 4.2% last month. Economists had expected no change from August's reading of 4.4%.
Average hourly earnings rose month-on-month by 0.5% in September, beating forecasts for a gain of 0.3% and compared to the prior 0.2% advance.
The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation. Economists generally consider an increase of 3.0% or more to be consistent with rising inflation.
Additionally, the private sector unexpectedy destroyed 40,000 jobs in September, compared to consensus expectations for the creation of 83,000 jobs. August's number was revised down to 164,000 private nonfarm payrolls, from the prior reading of 165,000.
Government payrolls increased by 7,000 last month, compared to creation of 5,000 jobs in August, revised from an initial loss of 9,000 positions.
The participation rate ticked up to 63.1% in September from 62.9% the previous month.
The U-6 unemployment rate, that includes those workers who are working part-time for purely economic reasons, fell to 8.3% last month from 8.6% in August.
Furthermore, the average weekly hours remained unchanged at 34.4 in September, in line with expectations.
After the release, the U.S. Dollar Index traded at 93.97, compared to 93.81 earlier. EUR/USD traded at 1.1688, from 1.1709 before the publication, USD/JPY traded at 113.16, from 112.95 earlier, and GBP/USD was at 1.3063, compared to 1.3078 previously.
U.S. futures pointed to a steady to lower open on Wall Street. The blue-chip Dow futures eased 0.08%, S&P 500 futures slipped 0.10% while the Nasdaq 100 futures dipped 0.06%.
Elsewhere, in the commodities market, gold futures traded at $1,271.16 a troy ounce, compared to $1,270.00 ahead of the data, while crude oil traded at $49.69 a barrel from $49.72 earlier.