CIBC Research discusses its reaction to today's Canadian jobs report for the month of April.
"Disappointing Canadian data have been a rarity recently, but today's employment data managed to deliver a modest downside miss relative to consensus expectations. The 15K gain in employment compared to a consensus forecast of +40K, with the compositional split between full time (-32K) and part time (+47K) also adding to the slightly soft overall tone. The unemployment rate fell to a fresh low of 5.2%, but this time driven by a decline in participation rather than the strong employment readings of prior months," CIBC notes.
"Overall, the slightly weaker than expected employment report today doesn't change the overall picture of a much stronger labour market than at the start of the year, and as such shouldn't deter the Bank of Canada from delivering another 50bp hike at its next meeting," CIBC adds.