CIBC Research discusses its reaction to today's US jobs report.
"Hiring accelerated in the US in October, with the 531K employment gain above the consensus forecast of 450K. A +235K revision to the prior two months added to the good news. Leisure and hospitality led the job gains as new Covid cases decelerated over the month, but hiring was relatively broad-based across industries. Surprisingly, public education payrolls declined despite employment in that sector remaining well below pre-pandemic norms since the return of in-person classes in September. The unemployment rate fell by a tick more than expected, to 4.6%, as the household survey showed a solid gain in jobs and the participation rate held steady. Average hourly earnings rose by a strong 0.4% as employers continued to attract workers to fill elevated job openings," CIBC notes.
"While better than expected, this print still leaves the unemployment rate 1.1%-points above the lows the Fed is aiming to see in the next two years," CIBC adds.