Canadian labor market likely to have weakened in December – TD Economics

The Canadian labor market is expected to have ended the last year on a weaker note. According to a TD Economics research report, Canada is likely to have recorded a loss of 10k jobs in December, though this could hardly be seen as overly negative following the sharp rise in hiring in the previous month.

Job losses are expected to be seen in both goods and services as retail and manufacturing give back some of the +30k jobs each industry added in November, stated TD Economics. But given the phase of the labor market it is likely that the headline job growth is overlooked in favor of measures of labor market slack.

“Here we expect a further improvement in wage growth for permanent employees, with 2.8 percent y/y likely, though the unemployment rate will likely rebound to 6.0 percent”, added TD Economics.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at -29.8341, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -50.3079. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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