CIBC Research discusses its reaction to today's US jobs report for the month of July.
"In a clear sign that the US economy is not in a recession, hiring accelerated in July, showing that the Fed's fight against inflation is far from over. The 528K jobs gained were miles above the consensus of 250K and added to a +28K revision to the prior two-month job tally. This was a strong report across the board as hiring was widespread across industries, monthly wage growth accelerated to 0.5% (vs. 0.3% expected), and the unemployment rate ticked down to 3.5%, relative to the consensus for it to remain steady. The drop in the unemployment rate reflected a more modest gain in employment on the household survey (+179K), and was aided by a slight drop in the participation rate," CIBC notes.
"This report clearly dispels the notion of the economy already being in a recession, but it is much too hot for the Fed that is aiming to prevent a further tightening in the labor market in order to contain inflation," CIBC adds.