The most important indicator of the American labour market, the Non-Farm Employment Change, dissapointed big time with only 169k jobs created last month. On the other side, the unemployment rate fell to 7.3%, a minimum close to data last reported in January 2009. As this is an important critaria that Fed considers before deciding on the Quantitative Easing Program, the 18th of September looks like a battle even harder. Currently, the FOMC members are approving Ben Bernanke’s plan to reduce the easing program. Remains to be seen if the data released today will weight enough to influence the date of the tapering (later this year or next year). Economists incline to believe that the Fed’s decison will stay in place because their assessment is based on a broad range of indicators that offers information over a greater period of time.
In any case, United States’ economy shone yestrday in the light of the ADP results, 176k jobs created in the private sector, a decrease in the unemployment rate at 323k and the Non-Manufacturing Index showing an expansion correlated with 58.6 points.
Canada really delivered an improvement in the labour market with a fell in the unemployment rate at 7.1% and an impressionant number of new jobs created last month, 59.2k, mainly because of the boom in part-time jobs.