Canadian employment rises in November, jobless rate falls to 5.9 pct

Canada’s labor market added 79.5k jobs in the month of November, marking the 12th consecutive month of employment gains. Solid hiring and a greatly unchanged labor force drove the jobless rate to fall to 5.9 percent from October’s 6.3 percent. Part-time jobs drove the gains, rising 49.9k. Full time jobs also rose strongly, rising 29.6k. Full-time jobs rose 3 percent year-on-year, the fastest rate in 15 years.

Job gains were concentrated in the private sector, which recorded a rise of 72.4k, with the public sector recording a gain of 10.6k. Both goods and service-producing industries added positions at a strong clip. Goods industry jobs rose 37.4k, driven by manufacturing that added 30.4k, with construction rising a strong 16.8k.

Services industries added 42.1k, with trade industries accounting for almost all of the gains, rising 38.8k. Region wise, Ontario accounted for half of the gains, recording a rise of 43.2k. Quebec recorded a gain of 16.2k jobs, whereas Alberta recorded considerable drop in its jobless rate to 7.3 percent. The hourly wage rate rose to 2.7 percent year-on-year from October’s 2.4 percent.

The labor market of Canada seems unstoppable at this point, noted TD Economics in a research report. In the last 40 years, the jobless rate has only been slightly lower in one month. The labor market strength is unlikely to go unnoticed by the Bank of Canada. Risks to the outlook notwithstanding, the widespread strength in jobs and wage growth imply that the central bank will continue to normalize monetary policy, stated TD Economics.

“The Bank of Canada may choose to hold off next week, but the next rate hike is likely not more than a few months away”, added TD Economics.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bullish at 87.8951, while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -134.491. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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