RBC Financial says that today’s jobs data in the U.S. suggests that the labour market finally joining the recovery.

Initial jobless claims fell by 28,000 to 379,000 last week, their lowest level since mid-February. “Steady improvement in the labour market and a broadening of economic growth to the business sector should underpin the next leg of the recovery, a fact likely to start overshadowing the current doom and gloom besieging financial markets,” says RBC.

“You wouldn’t know from the reading the headlines, but the U.S. economy is rolling along at a decent clip,” says RBC. “Most economic indicators released during the past two weeks have not only come in on or above expectations, but are pointing towards accelerating GDP growth heading into the third quarter. The headline numbers found in retail sales, industrial production and housing starts reports support this view along with the details usually buried in these reports.”

As a result, RBC says that U.S. rate hikes might not be as far away as some Fed watchers think. “While we don’t expect the Fed to be aggressive on rate hikes this year, there is enough monetary stimulus and economic momentum to justify taking some of last September’s emergency easing out before year-end. Financial markets could be surprised — rate hikes could be just a few good earnings releases away.”