Previously, the market was able to accept the Fed raising interest rates earlier because of several consecutive months of better-than-expected employment data; this report weakens that continuity.
For example, the decline in the unemployment rate was accompanied by a drop in the labor force participation rate to 61.5%, indicating that a low unemployment rate cannot be simply interpreted as stronger demand; wages and a low unemployment rate also make it difficult for the Fed to shift to easing based solely on a weak non-farm payroll report. A more accurate interpretation is that this data postpones the pressure of "overheated employment forcing an earlier rate hike," rather than directly closing the possibility of further rate hikes.
