Employment

Employment gave a mixed but essentially positive result yesterday. While there were around 30,000 more jobs (expectations 20,000) this was made up of 43,800 in part time with a loss of 14,100 in full-time jobs.

The unemployment rate went up to 5.4% though from 5.1%. Expectations were for a drop to 5.0%. There was a huge increase in the supply of labour as elements of the working age population were encouraged to look for work. The participation rate rose to an all-time record high going back to 1978 of 65.9%. This is positive as it increases the nations productive capacity and keeps wage inflation at bay.

China
Speaking of inflation China is suffering (if that's the right word) from a jump in inflation from 3.6% to 4.4%. Industrial production was +13.1% from +13.3% and retail sales were up 18.6% from 18.8% (all y/y figures). Most of the increase in inflation was from food but their producer price index also jumped from 4.3% to 5%. This explained why they brought in measures for banks to increase reserves and curtail lending earlier in the week.