US economy loses jobs for first time in seven years

Non-farm payrolls declined by 33,000 in the month, against expectations of 90,000 new jobs

The US economy experienced a shock fall in jobs in September, the first monthly decline since 2010.

The Bureau of Labor Statistics reported that non-farm payrolls declined by 33,000 in the month, against analysts' expectations of 90,000 new jobs.

However, the Bureau suggested that the fall was mainly due to major disruption from hurricanes Irma and Harvey and the unemployment rate declined to 4.2 per cent, down from 4.4 per cent previously.

Average earning were recorded as growing at an annual pace of 2.9 per cent, up from 2.7 per cent previously, and higher than the 2.5 per cent Wall Street analysts had pencilled in.

The dollar index, which measures the value of the greenback against a basket of global currencies, spiked above 94.23 in the immediately wake of the data, but rapidly came back down.

First fall since 2010

“Traders were pricing in a weak print given the severe disruption caused by Hurricanes Harvey and Irma, and even though it came in far worse than expected the markets will go into the weekend feeling there is no reason to panic," said Marcus Bullus, trading director of MB Capital.

The figures are judged unlikely to affect the US Federal Reserve's interest rates hiking cycle.

"There can be no more doubt, the Federal Reserve will hike interest rates before year end as already strong data now has the support of the Fed’s 'prodigal son': wage growth," said Manuel Ortiz-Olave of Monex Europe.