Canada's unemployment rate reaches six-month high
SPY•Canada's unemployment rate rose to 6.7% in October, a six-month high, as the economy shed 4,700 jobs. Average hourly wage growth for permanent employees slowed to 2% year over year.
1. Jobs decline in October
Canada lost 4,700 jobs in October, bringing total job losses this year to 46,000. The unemployment rate rose to 6.7% from 6.5% in September, while analysts had forecast a gain of 13,600 jobs and an unchanged unemployment rate. Full-time employment fell by 18,100, with nearly all losses in the private sector; wholesale and retail trade shed 28,800 jobs, while construction added 16,000.
2. Wage growth slows
Average hourly wages for permanent employees rose 2% year over year in October, down from 2.3% in September. The Canadian dollar weakened 0.54% to C$1.4092 per U.S. dollar, and two-year government bond yields rose 1.8 basis points to 3.174%. Money markets priced in a 25-basis-point rate increase in March, rather than January.
