Canada jobs report
  • Prior was -6.4K
  • Full time +32.2K vs +1.7K prior
  • Part time +7.8K vs -8.1K prior
  • Participation rate 65.5% vs 65.6% prior
  • Average hourly wages permanent employees +5.2% y/y vs +4.7% expected (+5.0% prior)
  • Total average hourly wages 4.9% y/y vs 5.0% prior
  • Unemployment rate 5.5% vs 5.5% prior
  • Participation rate 61.9% vs 62.0% prior
  • Involuntary part time rate 18.9% vs 17.2% a year earlier

Employment grew 40K in the month but was outpaced by 103K in population growth. That's an important dynamic as Canada goes full-tilt on immigration. It's now seven straight months that population growth has outpaced job growth.

USD/CAD has fallen sharply on this down to 1.3620 from 1.3660. Macklem was hawkish yesterday and specifically highlighted wage growth as something the BOC is watching carefully.

Canada LFS

The population side of the equation is going to be a key factor in the year ahead with 1 million people set to be added to the country of 40 million and now 900,000 foreign students studying in Canada -- up from 300,000 a few years ago.