The Commerce Department reported that the U.S. economy added 203,000 new jobs last month, which was better than expectations. Also the unemployment rate fell to 7% from 7.2%. While this is a positive report, and the jobs added were broad-based, spanning most industries across the economy, a 7% unemployment rate is still too high, and is below the target rate of 6.5% the Fed has set. Still, this report does place more pressure on the Fed to step-up its start date for tapering-off its bond buying program.
The Fed will be watching the trend, rather than focusing on any one data-point. Here is a chart of the employment results:
We can see that we have been hovering around the 200,000 level, but we do not see a positive uptrend developing. Still, a prolonged period of consistent jobs creating is positive for the economy, and may be enough to spur the Fed to take action to slow their bond purchases sooner than expected.