- Prior month employment change: 75.1K
Details for the month of August:
- Employment change:-41.7K vs +15.0K expected; prior +75.1K
- Unemployment rate:6.4% vs 6.4% expected; prior 6.4%
- Full-time employment change:-35.9K vs prior +38.6K
- Part-time employment change:-5.8K vs prior +36.6K
- Participation rate:65.0% vs prior 65.1%
- Average hourly wages for permanent employees:+2.0% YoY vs +3.0% expected; prior +3.0%
The Canada employment report for August was weaker than expected. Employment fell by 41.7K, well below the expected gain of 15.0K, with losses in both full-time and part-time positions. Full-time employment declined by 35.9K, while part-time employment fell by 5.8K.
Despite the decline in employment, the unemployment rate remained unchanged at 6.4%, matching expectations. That was partly explained by the participation rate slipping to 65.0% from 65.1%, meaning fewer people were actively participating in the labor force.
Wage growth also cooled sharply. Average hourly wages for permanent employees increased by just 2.0% from a year earlier, down from 3.0% in the prior month and below the 3.0% estimate. Overall, the report points to a softer Canadian labor market, with falling employment, weaker labor-force participation and easing wage pressures. That combination should reduce pressure on the Bank of Canada to tighten policy further and is a negative input for the Canadian dollar. With the US jobs report showing more strength the USDCAD is moving higher. .
This article was written by Greg Michalowski at investinglive.com.