Stocks Rise on Private Sector Jobs Gains

Bikram Pandey
03 Sep, 2010
New York City

U.S. stocks gained after the release of better than expected jobs report in August. Private sector added jobs in the month and the additions for June and July were revised higher.

[R]1:45 PM New York – U.S. stocks gained after the release of better than expected jobs report in August. Private sector added jobs in the month and the additions for June and July were revised higher.[/R]

The U.S. Labor Department reported employment in August fell much less than anticipated. The report showed that non-farm payroll employment fell 54,000 jobs in August, matching the revised decline in July.

The total number of unemployed increased to 14.86 million in August from 14.59 million in July as the service sector hiring lags.

Unemployment rate that included people who have stopped looking for jobs increased to 16.7% in the month from 16.5% in July.

Additions at the private sector have been robust than earlier predicted as the employers added more jobs and in 9 of the last ten months.

Private companies added 67,000 jobs ahead of most economists’ estimate of at least 40,000. July private sector hiring was revised up to 107,000 from the previous estimate of 71,000 and June estimate was revised higher to 71,000 from 31,000.

However, the unemployment rate still edged higher to 9.6% in August from 9.5% in July. The temporary hiring picked up as U.S. hired staff for Census 2010.

Construction added 19,000 jobs and healthcare increased 28,000 jobs in the month.

Hours worked in the week averaged 34.2 and hourly earnings in the private sector increased 6% to $22.66.

Stocks rallied in the morning and continued to trade higher after the release of jobs report. Temporary help and employment services providers surged. Robert Half International and Monster Worldwide surged more than 5%.

Crude oil and copper edged higher but gold traded lower. European markets also closed higher after the jobs report.