CIBC Research discusses its reaction to today's US jobs report for the month of September.
"Hiring was robust in the US in July, as recruitment efforts by employers paid off. The 943K jobs added were above the consensus expectation for an 858K gain and came atop a +119K revision to the prior two months. The leisure and hospitality industry was the largest contributor to the gain, with state and local government hiring next, supported by federal funds received lately. Wages rose by a strong 0.4% as employers continued to entice workers. The participation rate rose by only a tick to 61.7%, and the unemployment rate fell by five ticks to 5.4% as the household survey showed a 1mn gain in jobs," CIBC notes.
"With many states set to see the unemployment benefit top-ups expire in early September, healthy job gains should continue ahead, in line with elevated job openings. This print should be enough to allow the Fed to announce an early 2022 tapering of QE at the September meeting," CIBC adds.