US Unemployment Rises to 3.6%; Bitcoin price increases
The U.S. reportedly added 311,000 jobs during the month of February, according to the latest data on nonfarm payrolls from the Bureau of Labor Statistics. This is relatively far more than the 225,000 jobs that economists had predicted would be added; although that is lower than the previously reported 517,000 jobs in January. The reported unemployment rate has increased to 3.6%, which is the lowest level since May 1969.
Recession on hold for now?
Despite the massive wave of layoffs that hit some of the largest companies in the country, unemployment surprisingly fell and more jobs were added to the labor market than expected in January. These changes added to indications that the US economy may not slow down anytime soon and the Federal Reserve
could continue with its 25 bps rate hike – in contrast to the growing speculation of a 50 bps rate hike following the recent Fed Chair’s testimony at the US Senate hearing.
Read more: Check out the 10 best DeFi lending platforms in 2023
The leisure and hospitality sector was responsible for the most job growth, generating almost 105,000 new positions. According to the report, retail employment increased by roughly 50,000, while government employment increased by 46,000. However, a 0.2% month-over-month increase in wages represents the weakest wage increase since February 2022.
Market reaction
Markets across sectors witnessed a significant price rally as the non-company wage data was released. The announcement caused a brief spike in the price of Bitcoin (BTC), which resulted in a 1.13% increase in the last 30 minutes, as opposed to a 7.42% decrease in the previous 24 hours. At the time of writing, BTC is currently trading at $20,037.
The price of Ethereum (ETH), on the other hand, is currently exchanging hands at $1,407, reporting a gain of 1.04% in the last 30 minutes, while registering a remarkable fall of 8.32% during of the last 24 hours. In response to the news, major altcoins such as XRP, DOGE and BNB also experienced a surge in value.
Furthermore, US stock index futures turned positive in volatile trade following the release of the jobs data. Futures contracts for the S&P 500 increased by 0.37%, while contracts for the Nasdaq-100 rose 0.6%. Dow Jones futures also registered a rise of 12 points, equivalent to a gain of 0.04%.
Also read: Vitalik Buterin warns investors about these crypto projects
