CIBC Research discusses its reaction to today's US and Canada jobs reports.
"The US labor market's performance was surprisingly weak in April given other signs of the economic reopening. The 266K jobs gained were miles below the consensus expectation for an acceleration in hiring to 1mn and that was compounded by a -78K revision to the prior two months. The softness was relatively broad based, with goods sectors seeing losses on the month, while leisure and hospitality was the only services sector to see a material gain in jobs, with government being the next best performer. The unemployment rate rose by a tick to 6.1% as the labor force participation rate climbed and the household survey also showed a slowdown in hiring. We'll stick to our view that there will be much stronger job gains ahead, but today's data will leave the Fed's dovish tone intact," CIBC notes.
"The Canadian labour market was crushed again under the weight of another rise in COVID cases. The economy shed 207K jobs in April as the third wave forced a new round of harsh restrictions. That was a more pronounced loss than the consensus had anticipated and took the unemployment rate all the way back up to 8.1%, from 7.5% in March...The good news is that the curve is bending in some regions of the country and vaccinations are picking up pace, both of which should help the labour market begin to recover in June," CIBC adds.