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Positive Canadian employment data can’t hide sluggish labour market

Friday saw some vital economic releases from Canada in the form of the monthly Employment change and Unemployment rate.

CN tower

Employment change was anticipated to reached 16k but easily surpassed that target attaining 26.2K new work positions last month. The rise which gave a needed positive for the economy created the majority of new roles within the public sector, Quebec in particular benefited with healthcare and Social assistance placements.

Unfortunately, the positivity was short lived following the release of the Unemployment rate which marginally missed expectation reaching 7.0%. It had been anticipated to equal last month’s figure and reach 6.9% and highlighted the continual hurdles faced by Canada’s Labour market.

Alberta in particular has suffered following wildfires and last month reached its highest level of unemployment for over 22 years falling 0.2% and contracting to 8.4% in August. The province is now expected to turnaround in the third quarter as these have been bought under control.

In the last 12 months’ full time roles in Canada declined more than 37,000 positions whilst part time work increased by over 113,000 roles.

Canada faces further Economic challenges due to a weak oil prices which amongst other issues, contributed to the economy shrinking 1.6 per cent in the second quarter.

Following the monthly reports, the Canadian Dollar dropped from 0.7717 against the USD and closed at 0.7671 at the close of trading. It reacted similarly against the Euro and GBP, CAD/EUR opened at 0.6851 on Friday and closed 0.6823.  CAD/GBP opened at 0.5808 and closed at 0.5780. The losses have continued today and currently CAD/USD sits at 0.7644, CAD/EUR 0.6811 and CAD/GBP is hovering around 0.5746.

Related:  Canadian Dollar Rate Strengthens Following Anticipated Interest Rate Rise

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