Canada's Employment Report – October

TORONTO (Reuters) – Canada's economy added 14,500 jobs in October, with the jobless rate holding steady at 6.5%, according to Statistics Canada data released on Friday.

Market Reaction

• CAD/

Commentary

Nick Rees, Senior FX Market Analyst at Monex Europe Ltd:
> "Jobs gains slipped back in October, as we expected with less help from seasonal adjustments this month. But the unemployment rate stabilizing at 6.5% might give the Bank of Canada some pause for thought when considering another 50 bp (basis point) rate move in December, keeping USD-CAD treading water for now."

Andrew Grantham, Senior Economist, CIBC Capital Markets:
> "Canadian employment growth was lackluster in October, with the unemployment rate only holding steady due to a decline in labor market participation. With one more employment report before the Bank's next interest rate decision, this release didn't conclude the 25 vs 50 bp cut debate. The mixed nature of today's data suggests another 50 bp move is likely."

Doug Porter, Chief Economist, BMO Capital Markets:
> "There is no big surprise from the jobs data. The employment increase was slightly below expectations but aligns with the broad range of possibilities in Canadian job reports. Notably, the unemployment rate held steady at 6.5%, while a modest uptick was anticipated. Many jobs gained were in full-time private sector and manufacturing, aligning with modest economic growth."

Robert Both, Canadian Macro Strategist at TD Securities:
> "The job growth seems muted. The market anticipated a slowdown, and with 14,000 jobs added in October, the six-month trend shows a significant decline to just 18,000. The volatility in Canadian jobs data warrants a heavier focus on this trend. The unemployment rate was lower than expected, but the Bank of Canada may be cautious given the falling participation rate."