Nothing to write home about
The employment report was mixed, showing continued job growth but not strong enough to successfully remove the excess slack in the labor market. Nonfarm payrolls increased 157,000 with a net upward revision of about 600,000 jobs since January 2011. The unemployment rate edged up to 7.9% from 7.8% while the labor force participation rate remained unchanged. Moreover, this report is prior to the shock from fiscal austerity which threatens to cripple the economy this year. We continue to believe the Fed will stay the course until it has become clear the labor market is in a sustainable and strong recovery.
Read the full report here.