CIBC Research discusses its reaction to today's US jobs report for the month of September.
"Hiring underwhelmed in the US in September as 194K jobs were created, below the consensus forecast of 500K. Some of the downside surprise was offset by a +169K revision to the prior two months. Surprisingly, employment in government education fell despite the return of in-person classrooms, while the private sector added 317K jobs, with the gains being relatively broad based across industries. Despite the end of expanded unemployment benefits in the remaining states, the participation rate actually fell, and along with a 526K gain in jobs on the household survey, that pushed the unemployment rate down to 4.8%, which was three ticks lower than expected," CIBC notes.
"Overall, this report suggests that there is enough private sector momentum that a QE tapering is still likely to be announced at the November FOMC," CIBC adds.