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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