The break down revealed that 582k jobs were part-time highlighting that employers still remain cautious over the outlook for the US economy. As a result the unemployment rate dropped sharply from 8.1% to 7.8% reaching its lowest level since January 2009, which was the month when President Obama took office. The household survey tends to be more volatile then the establishment survey, and over the past year has also proved stronger adding on average 239k jobs/month compared to 151k/month.
According to the BTMU Research Team, “The unexpectedly strong report has driven investors to reassess the potential scale and duration of QE3, which has helped to support the US dollar in the near-term and weighed upon riskier currencies which have been supported by expectations of loose liquidity.” For comparison the Fed’s latest central tendency projection for the unemployment rate at the end of 2013 was 7.6-7.9%. “However, with economic growth still subdued it appears unlikely that the strong pace of employment growth can be sustained ahead, which is required to materially lower the unemployment rate.” they add.