Canadian economy to have added 10k jobs in August, jobless rate likely stable at 6.3 pct – TD Economics

Canada’s economy is expected to have added jobs in August. According to a TD Economics research report, the nation in forecast to have added 10k jobs in the month, slightly changed from the prior month but weakened in comparison to the lofty rate in the second quarter. Job growth is expected to have tilted towards public and private employees, which would coincide with a pullback in self-employment following strong two months.

July’s 35k gain in full time employment was consistent with the six-month trend and while some moderation can be seen from these levels, there is no catalyst to imply an outright correction. The jobless rate is expected to have remained stable at 6.3 percent, a record low for the current cycle, stated TD Economics. However, the risks lean a 6.4 percent print if last month’s pullback in labor force participation correct. Wage growth, at present is sitting at a subdued 1.2 percent year-on-year, should a modest rise on the heels of the tightening in labor market conditions and muted base-effects from last August, added TD Economics.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 41.0193, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -73.0247. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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