CIBC Research discusses its reaction to today's US jobs report for the month of April.
"Job creation remained solid in the US in April, with 428K jobs being added. When accounting for the -39K revision to the previous two-month job tally, that was roughly in line with the consensus expectation of 380K. Job growth was widespread across industries, with the leisure and hospitality sector contributing the most to the headline gain. The household survey showed a loss of jobs after an outsized gain in March, which left the unemployment rate unchanged at 3.6% (vs. 3.5% expected), along with a two tick drop in the participation rate to 62.2%. While wage growth decelerated to 0.3% on the month, the annual figure was in line with the consensus expectation at 5.5% given an upward revision to the prior month," CIBC notes.
"There is a slightly softer tone to the report with the unemployment rate not dropping, while it's too early to conclude a decelerating trend in wages from one month of data," CIBC adds.