Canada posts big job gain in October, unemployment rate unchanged
The Canadian economy has posted a bumper job gain in October, coming in 10 times higher than...
The Canadian economy has posted a bumper job gain in October, coming in 10 times higher than forecasts, with the jobless rate holding steady, official data shows, with the big beat upping market calls for another oversized interest rate hike.
The economy added a net 108,300 jobs last month, easily beating forecasts for 10,000 new jobs, while the jobless rate was unchanged at 5.2 percent, according to data released on Friday (Nov 4). The blowout gain was entirely in full-time work, spread across both the goods and services sectors.
While other data will be coming before the next Bank of Canada (BoC) rate meeting in December, the jobs surge suggests another 50 basis points increase may be coming, he added.
The BoC raised its policy rate by 50 basis points to 3.75 percent last week and said while more increases would still be needed, it was nearing the end of its tightening campaign.
The employment report bolstered money market bets of another outsized hike in December, with a nearly 70 percent chance of a 50-basis-point increase and the policy rate now seen peaking at 4.5 percent early next year.