U.S. ECONOMICS: CIBC Still Scratching The Head After Jobs Data

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CIBC (CM, CM.TO) sums today's jobs data as "not too many jobs, but a big drop in the unemployment rate." It says December's employment report was an "exaggerated" example of trends that have been occurring in the U.S. almost since the recession ended, with a disappointing payroll figure (the 74K increase coming against consensus forecasts for a near 200K gain) accompanied by a surprise three-tick decline in the unemployment rate as more people dropped out of the labour market. But even though the 6.7% rate of unemployment is now only modestly above the Fed's 6.5% threshold for considering rate hikes, the manner in which it is getting there will not impress FOMC members and as a result does not bring a rate hike any closer.



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