CIBC Research discusses its reaction to today's Canadian labor data for the month of September.
"Canada's labour market seems to have been vaccinated against the global economic flu going around. Another 54K jobs were piled on to the prior month's 81K gain, and while the composition wasn't ideal, wages looked quite firm on a year on year basis. The job gains were in full time work, but private sector paid employment fell 21K (but is till up 2.3% year-on-year). The job gains were in public sector work (particularly health care) and self employment. Still, with resources a key exception, the 12-month trends are generally healthy, and average wages for permanent workers were up 4.3% from a year ago, a figure that does look suspiciously high but does signal a firming in pay scales,' CIBC notes.
"A jobless rate of only 5.5% will cement the case for the Bank of Canada to remain on hold in October, but we continue to look ahead towards the global slowdown impacting Canadian data over the balance of the year," CIBC adds.