CIBC Research discusses its reaction to today's Canadian jobs report.
"After a couple of months of outsized gains, Canada's labour market didn't get the job done in October. Headline employment shed 2K jobs during the month, with full-time employment actually down a more meaningful 16K. An increase of 20K public administration jobs, likely tied to the election, saved the headline from falling further into negative territory. Despite the slight decline, the unemployment rate remained steady at 5.5%, and the year-over-year pace of wage growth for permanent workers accelerated a tick to 4.4%. We, however, don't put too much too much stock in the above-4% wage reading, given that it it's coming off of a strangely slow year last year and tends to be very volatile," CIBC notes.
"Overall, employment is still up 2.4% year-over-year, but that's come in contrast to much softer GDP and hours worked data. We continue to see a convergence coming from a further slowdown in employment, eventually leading the Bank of Canada to trim rates, and today's data could be the first step in that direction," CIBC adds.