Canada’s Employment data supports the call for a 50bp hike in December

The Canadian employment data, o Thursday, surpassed expectations with a positive change in employment of 108K above the 10K of market consensus. The surge could be a signal that some of the declines seen over the summer were simply statistical noise.

Accordingly, the data support the call for a further 50bp interest rate hike at that time, but analysts warn there is still one more employment report to come before the next Bank of Canada’s meeting.

The remarkable rebound in employment during October, accompanied by a rebound in the size of the labour force, is likely a sign that the declines seen over the summer were largely statistical noise, rather than a sign that the labour market truly surged ahead this month.

The breakdown of employment showed that all of the jobs created were full time positions, with part time actually down slightly relative to the prior month. Most of the jobs created were among private sector employees, although public sector employment and self-employment also rose.