Canada jobs report for the month of August 2019
- Net change in employment 81.1 K versus 20.0 K estimate. Prior month -24.2 K
- Unemployment rate 5.7% versus 5.7% estimate. Last 5.7%
- Hourly wage rate 3.8% versus 4.5% estimate. Prior month 4.5%
- Full time employment change 23.8 K versus 17.5 K estimate. Prior month of -11.6 K
- Part time employment 57.2 K versus 7.0 K estimate. Last month -12.6 K
- Participation rate 65.8% versus 65.6% estimate. Last month 65.6%
- private employment rose 94.3 K versus -69.3 K last month
- public employment fell -2.1 K versus 17.5 K last month
- Goods employment rose 7.8K vs 2.1K last month
- Service employment fell 73.3K last month
Job gains were driven by finance and insurance sector (+22.4K). Business support sector led losses at -22.3K.
Although it is a monster gain in employment, most of the gains was in the less impactful part-time employment. The full-time employment was stronger than expectations but not by much (around 6K stronger). Nevertheless, the better jobs report reaffirms the expectations from the Bank of Canada that they are someone immune from the global trade headwinds.
According to the report the labor force jump by 91.3K with more than half being youth. The participation rate increased as a result.
Wages were less than expectations but still fairly robust at 3.7% from a year earlier.
Although jobs were mostly in the part-time employment, it is still a very good report.
The USDCAD has moved lower and tests the August 5 low at 1.31765.
