Overview of the five key points of the US August non-farm payroll data

1. Employment growth significantly slows: Nonfarm payrolls increased by 22,000 in August. Revised data shows that employment had a negative value in June - the first nonfarm employment decline since 2020. The unemployment rate rose slightly to 4.3%, reaching the highest level since 2021. 2. Divergent trends in different sectors: Employment growth was concentrated in the healthcare and leisure and hospitality industries, while industries such as information, financial activities, federal government, and business services saw significant declines. Manufacturing positions decreased by 12,000, with a total decrease of 78,000 so far this year. 3. "DOGE" effect emerging: The August nonfarm data also showed signs of the "DOGE effect," with a decrease of 15,000 federal government employees in August, totaling a decrease of 97,000 since the peak in January. 4. Overall showing weak signals: Average weekly work hours decreased to 34.2 hours, which may be a signal of weakening labor demand. At the same time, the labor participation rate rose to 62.3%. 5. Gold hits new record high again: Influenced by the data, US Treasury bonds rose, as traders fully digested the expectations of a Fed rate cut this month. The 2-year bond yield fell by up to 8 basis points to 3.5%, while the 10-year bond yield fell by over 6 basis points to 4.1%. Spot gold briefly rose to $3,586.77 per ounce, hitting a record high.