CIBC Research discusses its reaction to today's Canada's jobs report for the month of December.
"After two months of woe, Canada's job figures roared back, making up half of the prior month's decline in employment and sending the jobless rate back to whence it came. The 35K jobs gain was all in full time private sector paid jobs, and the 5.6% unemployment rate (vs 5.9% the prior month) is not quite back to its lows but is in the range considered to be full employment. Note however that hours worked are only up 0.3% from a year ago, and this survey's measure of wages (which both we and the Bank of Canada judge to be of little value) eased back to 3.8% year over year (from an implausible 4.4% the prior month)," CIBC notes.
"Overall, a healthy enough report to have the Bank of Canada maintaining its steady as she goes stance in January, but given that Q4 GDP looks to be tracking only a 0.5% growth rate, we expect softer jobs figures ahead," CIBC adds.