The US unemployment rate rose to its highest level in 26 years at 9.8% with nonfarm payrolls job losses at -263k. The rise in the September unemployment was in line with expectations but the nonfarm payrolls decline was larger than expected with the trade looking for a decline of around 180k. This marks the 21st consecutive month of job losses in the US. August nonfarm payrolls was revised up by 15k to -201k and July was revised down by 28k to -304k. The September unemployment report confirms that US labor market remains weak and jobs losses accelerated. The number of long-term unemployed rose to 5.4 mln in September. The US has lost 7.2 mln jobs since the recession started in December 2007. Taking into account part-time workers and discouraged workers the unemployment rate is now at 17% from 16.8% last month. The USD extended early gains in reaction to the worse than expected nonfarm payrolls as the data generates concern about the potential strength of the US economic recovery.
Figure 1: US Nonfarm Payrolls