CIBC Research reviews today's US March jobs report.

"Payroll employment rebounded more than expected in March and the unemployment rate edged down, something that will, temporarily at least, ease fears regarding a weakening labor market. The 178K gain in payrolls employment was well above the consensus forecast (+65K), and was offset only very slightly by cumulative downward revisions of 7K to prior months. Health care employment rebounded sharply following a strike-impacted February, while retail trade and transportation also saw gains following declines in the prior month. Despite strong employment growth, hourly earnings were weaker than expected at 0.2% m/m and 3.5% y/y. While that's not great for households, particularly given the pressures to disposable incomes from higher pump prices, it may ease concerns at the Fed regarding broader-based inflationary pressure," CIBC notes.

"Overall though this was still clearly a better than expected report and one that justifies the current wait-and-see approach from the Fed, as it assesses how persistent the current oil price shock will be and how likely it is to spill over into other areas of inflation," CIBC adds.