Canadian jobs added
  • Unemployment rate 5.3% vs 5.3% expected (prior 5.5%)
  • Full time +92.7K vs 121.5K prior
  • Part time -20.3K vs 215.1K prior
  • Participation rate 65.4% vs 65.4 exp (prior 65.4%)
  • Avg hourly wages 3.7% y/y vs 3.3% prior
  • Total hours worked +1.3% m/m
  • Employment among those aged 55 or over rose 39K
  • Services +42K
  • Goods +31K
  • Employment to population 62.4%

The fall to 5.3% unemployment marks the lowest Canadian reading since records began in 1976. The adjusted unemployment rate—which includes people who wanted a job, but did not look for one—was below its pre-pandemic level for the first time at 7.2%.

Canadian unemployment

At some point in the very-near future there won't be much jobs growth because labour supply will be largely tapped out. We're seeing the over-55 cohort pulled back into the work force and Canada has heavy immigration so there will still be growth but +25K will soon be a 'good' number.

 CAD  is largely unchanged after the report but even with a 50 bps hike next week, the BOC could signal more half-point hikes because of the strong jobs backdrop.