HomeContributorsFundamental AnalysisCanadian Employment Back to Strong Gains

Canadian Employment Back to Strong Gains

  • Employment rose 81,000 in August
  • Part-time jobs accounted for most of the increase
  • Unemployment was steady at 5.7% and wages continued to rise at a healthy clip

Canadian economic data have surprised to the upside recently and this morning’s jobs numbers kept that rolling with an unexpectedly strong 81,000 increase in August. Impressive job gains are nothing new—average employment growth over the last year is running at its strongest pace since 2003. August’s gain was skewed toward part-time (and younger workers) but trends in full-time and private employment have been healthy. Job gains have been aided by strong population growth and labour force participation, with the unemployment rate settling in a 5.5-5.8% range (as good as it gets when you look at the past 50 years). Wage growth, long the missing ingredient in Canada’s strengthening labour market, has firmed nicely. The LFS measure has been close to 4% in Q3, while a broader array of wage indicators was around 3% in Q2 (about consistent with full employment and 2% inflation). Overall, today’s jobs numbers will leave the BoC comfortable with its more neutral than expected stance taken this week. Markets seem to agree, with the Canadian dollar strengthening further this morning.

RBC Financial Group
RBC Financial Grouphttp://www.rbc.com/
The statements and statistics contained herein have been prepared by the Economics Department of RBC Financial Group based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness. This report is for the information of investors and business persons and does not constitute an offer to sell or a solicitation to buy securities.

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