CIBC Research discusses its reaction to today's US and Canadian job reports for the month of November.
USD: "Hiring decelerated to a more sustainable pace in November, following the reversal of weather distortions that boosted employment in the prior month. The 155K jobs gained was below expectations for a 198K gain, and the prior two months saw 12K of cumulative downward revisions. Wages advanced by 0.2%, in line with our call but a touch below the consensus, leaving annual wage growth unchanged at 3.1%. The unemployment rate held steady at 3.7%, with the participation rate also remaining constant.
While the jobs gained were slightly softer than expected, the Fed should remain confident in raising rates at their December meeting given the constructive wage reading and other positive consumption indicators seen lately," CIBC notes.
CAD: The random-number generator that is the Canadian Labour Force Survey spat out a massive reading for November. The increase of 94K jobs is essentially the largest monthly gain since 2012 and left the unemployment rate at 5.6%, the lowest on record . The details were also very constructive, with almost all of the jobs created being full-time and participation rising two-ticks
The large gain in jobs will keep a BoC January rate hike on the table for now, but we'll need to see similarly positive evidence from other indicators and no major reversal in the next jobs report," CIBC adds.