CIBC Research reacts to today's US jobs report for the month of September.
"Job gains continued in the US in September, but with less momentum than in prior months, suggesting that the economic recovery is on a softer trajectory. The 661K employment increase was below the consensus forecast and leaves just over half of the jobs lost in the spring months recouped, when taken with the +145K revision to the prior two months. September's figure included a 216K drop in government employment, while gains were spread across private industries. The drop in the unemployment rate to 7.9% was sharper than expected and reflected a drop in participation," CIBC adds.
"Despite making solid progress from last quarter's depths, the US labor market remains far from healed and gains from here are likely to slow further given that there are less temporarily laid off workers to call back and the aggregate demand picture remains soft given the lack of further fiscal support as well as elevated virus cases," CIBC adds.