Job growth accelerates further in Canada in October on rise in full-time jobs

Canada saw 11th consecutive increase in job as 35.3k net new positions were added in October. The jobless rate rose marginally to 6.3 percent in the month after staying at 6.2 percent for two months, as more people entered the labor force. The gains in the month were driven by full-time jobs that grew 88.7k. But around 53.4k part-time jobs were shed in October, the second straight month of part-time job losses. The private sector added 39k jobs in October, while there was little change in public sector employment. Self-employment was little changed in the month.

Jobs in good-producing industries led the rise, adding 33.9k positions, mainly driven by construction (+18.4k), and a notable rise of 7.8k in manufacturing. The services side of the economy stayed weak for the second straight month as healthy gains in sectors such as other services and information culture and recreation were greatly countered by a large drop in trade.

Region wise, Quebec saw the strongest job gain, adding net 33k full-time jobs while part-time jobs dropped 15k. Job gains elsewhere were less strong, with net rises recorded everywhere except Ontario and British Columbia; both provinces saw employment little changed in October. Growth in hourly wages and hours worked rose in October. The headline hourly wage rate accelerated to 2.4 percent year-on-year, while hours worked rose 2.7 percent year-on-year, albeit from a weak base, noted TD Economics.

In all, the report for October month was strong, with solid full-time job gains, a slight rise in the participation rate, and acceleration in hourly wage growth and growth in hours worked. This morning’s data extends the streak of job gains to 11 months. Hourly wage growth is expected to raise some questions at the Bank of Canada, holding above 2 percent for the second straight month and even accelerating slightly. Labor market in Canada continues to be in line with a view that the Canadian economy is operating at or very near to capacity, stated TD Economics.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bullish at 124.42, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 78.496. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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