Jobs surge 'muddies the outlook': What the latest data might mean to the Bank of Canada
Canadian jobs data surprised again in September with a net gain of 63,800 positions, more than triple forecasts.
The unemployment rate remained unchanged at 5.5 per cent, said Statistics Canada in itsLabour Force Survey, on Oct. 6.
Most of the gains were in part-time work, said the national data agency, with part-time jobs rising by 48,000 or 1.3 per cent.
The employment rate — those aged 15 and older who are working — rose to 62 per cent, offsetting a decline in the previous month.
Statistics Canada said in its release that the economy would need to generate 50,000 new jobs each month to keep up with soaring population growth and maintain the current employment rate.
Here’s what economists are saying about the jobs report and what the numbers might mean for the Bank of Canada and interest rates.
“Details of the September labour market data were more mixed than strong headlines would suggest. And there are still signs that hiring demand continues to soften under the surface relative to surging labour supply, with broader unemployment measures pointing to more softening than the official unemployment rate itself implies. Still, it would be difficult for the Bank of Canada to look through very strong top-line employment growth, and wages are showing few signs of decelerating despite signs that labour supply is beginning to catch up to hiring demand. Our own base-case does not assume further interest rate hikes from the Bank of Canada this year — and there is still another monthly inflation report and the closely watched Business Outlook Survey to be released before the central bank makes its next decision on interest rates. But the BoC has been clear that it won’t hesitate to respond with more hikes if necessary to cool
Read more on financialpost.com
