FxWirePro: Job growth in Canada hits ‘Great Recession’ levels

Today’s employment report from Canada was a shocker to many. After the strongest job growth in 2017, 2018 is proving to be dire to the same extent. It’s like massive draught after massive flood. Net job creation in Canada hit record levels of 33,100 on an average monthly basis in 2017. However, in 2018, job growth has dropped to just 7,100 per month for the first eight months into 2018.

As job growth averaged 42,900 in the last two reports, the financial market was expecting another positive report, but to many analysts’ surprise, there was net job loss in August to the tune of 51,600. As a result of the loss, the unemployment rose by 0.2 percent to 6 percent, despite a 0.1 percent drop in the participation rate.

2018’s job growth has now dropped the levels of the ‘Great Recession’ era of 2008/09 when job grew at the rate of 7,800 per month.

With United States’ policy changing towards Canada, especially in trade, this employment indicator should be under the radar.

As bad news circle Canada, the exchange rate is down almost a percent this week.