The fact that payrolls exceeded 150K was enough for everyone—including the Federal Reserve—to breathe a sigh of relief.
The rise in the unemployment rate from 7.5% to 7.6% is an annoyance, as is the stagnation in average hourly earnings and the downward revision to last month's report, but the U-6 unemployment rate, which is the number economists follow more closely, actually declined last month, giving the central bank peace of mind. As a result, today's number will not change the conversation that the Fed is having about tapering asset purchases later this year.
"For the Bank of Canada (BoC) and new governor Stephen Poloz, the latest employment numbers will keep monetary policy steady with a bias towards raising rates. Compared to the rest of the world, Canada's economy is a shining star, and that will attract demand for the loonie."
'via Blog this'
