Canada’s labor market posted another strong advance in September and the unemployment rate continued it’s unexpectedly fall.
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Canada posted another surprisingly strong month of job gains in a labor market that is on track for one of its best years on record.
The economy added 53,700 jobs last month, Statistics Canada said Friday in Ottawa, following a gain of 81,100 in August. Canada has now added 358,100 since December, the most in the first nine months of a year since 2002.
The strong print will only reaffirm Bank of Canada expectations that the economy has developed a certain amount of resilience to trade headwinds and global economic uncertainties, giving it ammunition to buck the global trend of lower interest rates.
The Canadian economy added a stronger-than-expected 53,700 net jobs in September, with all the gains coming in full-time work and largely driven by the services sector, Statistics Canada data showed on Friday, reducing analysts’ expectations for a central bank rate cut this month.
The national unemployment rate fell to a near-record low of 5.5%, from 5.7% in August, while wages for permanent employees rose 4.3% year-over-year. Analysts in a Reuters poll had forecast a gain of 10,000 jobs and an unemployment rate of 5.7%. Canada hit an all-time low jobless rate in May at 5.4%.
The Canadian dollar strengthened to C$1.3225 to the U.S. dollar, or 75.61 cents U.S., after the bigger-than-expected jobs gain.
Canada’s unemployment rate nudged down to a near four-decade low last month, seemingly shrugging off global signs of an economic slowdown, but with economists warning that the numbers weren’t entirely rosy.
Statistics Canada’s monthly labour force survey showed the country added about 54,000 net new jobs in September, driven largely by gains in full-time work, and dropping the jobless rate nationally by 0.2 points to 5.5 per cent.
The numbers surpassed analysts’ expectations that the country would gain 10,000 jobs in September, according to financial markets data firm Refinitiv.
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