Some folks have it in there heads that the weak report could cause the Fed to postpone tapering its massive bond purchasing program.
Capital Economics' Paul Ashworth disagrees.
In a note just out, he says there were still enough positive nuggets, especially in hourly earnings, to support tapering now:
Our best guess is that the cumulative evidence of improvement over the past year will convince a majority of officials that the tapering should begin at the next FOMC meeting in another couple of weeks' time, but we're not going to pretend this is a certainty.
But he goes on to say the odds still favor the taper.
Overall, with other indicators like initial jobless claims pointing to a strengthening labour market and the activity surveys indicating a pick-up in economic growth, we still expect the Fed to go ahead with the taper later this month.
TD Securities Eric Green agrees:
The August jobs report will not change our view on tapering this month. This was a weak report, but it does not change the tapering call because it was not weak enough and there is a lack of corroborating evidence across the broader economic landscape to suggest a new lower jobs trend has emerged. The Fed does not need strong growth to justify tapering, they need the absence of weak growth.
The next FOMC meeting starts Sept. 17.