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Forecast: Expecting Payrolls to Beat The 75K Expectation Tomorrow: Sep. 4, 2025

Forecast: Expecting Payrolls to Beat The 75K Expectation Tomorrow: Sep. 4, 2025

Posted September 4, 2025 at 12:50 pm

Jose Torres
IBKR Macroeconomics

My 140k forecast for tomorrow’s nonfarm payrolls is well above the consensus estimate of 75k, and in consideration of that dynamic, I find the risk-reward profiles of the “Yeses” at 80k and 130k attractive. They cost $0.47 and $0.08 for a total of $0.55. A print north of 80k would result in a $1.00 pay out for the investor while a number ahead of 130k would deliver $2.00. But keep in mind that expectations for this specific publication are all over the place, and the monthly Reuters poll of 72 forecasters ranges from a low of 0 to a high of 144k.

IBKR ForecastTrader Contract asking is US payroll will increase by more than 80,000 in August
Pricing of IBKR ForecastTrader Contracts related to US payroll

“Team No” on US Unemployment at 4.4%

Economists are expecting a tick up in the US unemployment rate to 4.3% from 4.2%. Meanwhile, monthly changes have not exceeded +0.2% since the pandemic, over five years ago, so I find the risk-reward dynamic of the “No” at 4.4% attractive; it’s going for $0.93. The path to lose money on this trade is particularly narrow, requiring a 0.3% jump to 4.5%.

Monthly changes in US unemployment have been small
IBKR ForecastTrader Contract asking if US unemployment rate will exceed 4.4% in August

“Team No” on CA Unemployment at 7.1%

Similarly, economists are expecting Canadian unemployment to increase by 0.1% from 6.9% to 7%. But monthly changes in this indicator have been volatile on a relative basis, however, a 0.3% climb is quite rare occurring just a few times in recent history (see chart below). For this reason, I find the risk-reward profiles of the “Nos” at 7.1% and 7.2% attractive, and they are going for $0.89 and $0.96. The path to lose money on this trade is also especially narrow, requiring a 0.3% jump to 7.2%.

Canada unemployment rate has been volatile
IBKR ForecastTrader Contract asking if Canada unemployment rate will exceed 7.1% in August
Pricing of IBKR ForecastTrader Contracted related to Canada unemployment rate

Source for Images: ForecastEx

Note: Prices are highest bids as of the morning of September 4, 2025. Red circles around the thresholds were inserted by J. Torres to highlight his preferred “Yes” and “No” answers throughout different levels.

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2 thoughts on “Forecast: Expecting Payrolls to Beat The 75K Expectation Tomorrow: Sep. 4, 2025”

  • DenisFrenette

    So what are u advertising you story is all over the place changing like it’s party, are u offering a job, if so, Im interested in the detail and pleas stay focus on the job application. Thanks

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