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Instant View: Canada adds 83,600 jobs in Oct, jobless rate drops

TORONTO (Reuters) - Canada added 83,600 jobs in October, less than markets had anticipated, and the unemployment rate dipped to 8.9%, Statistics Canada data indicated on Friday.

Analysts in a Reuters poll had predicted a gain of 100,000 jobs and for the unemployment rate to fall to 8.8% from 9.0%. STORY:

Market reaction: CAD/

LINK:here

COMMENTARY

RYAN BRECHT, SENIOR ECONOMIST AT ACTION ECONOMICS

“The labour market finally reverted to a more typical monthly change in October after the reopening surge ... With the initial pop to the recovery behind us and the run-up in virus cases this fall injecting fresh uncertainty into the outlook, this report is consistent with the BoC expectations that they will hold rates at 0.25% into 2023.”

BIPAN RAI, NORTH AMERICA HEAD OF FX STRATEGY AT CIBC CAPITAL MARKETS

“There’s some nice surprises in terms of hours worked and naturally the job increases were a little bit better than the market was expecting. The Statscan report highlighted there’s still a lot more room for recovery when it comes to the employment sector here in Canada, and that’s really the takeaway for markets at this point.

“The Bank of Canada is going to be on hold at least for another couple years so this one report isn’t going to move the dial for them, although they might take note of the increase in terms of self-employment during the pandemic for the first time. Employment levels are doing well in certain sectors, including wholesale trade, professional science and education. Still if you look at it from a holistic perspective we’re still well off from total employment before the pandemic and I think that’s what the Bank is most concerned about.”

ANDREW KELVIN, CHIEF CANADA STRATEGIST AT TD SECURITIES

“It’s impressive. We had a 60,000 drag from food, services, accommodation and recreation and we still came in just slightly under 100,000.”

“The full-time, part-time split was favorable. Hours worked were up 0.8%. These are all positive signs. It shows the economy maintained some momentum through October despite some worsening in virus numbers.

Obviously, we are decelerating relative to recent months but we are so close to pre-COVID levels of activity, some deceleration was inevitable. I think this should be viewed as an encouraging sign of the economy’s resilience.”

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS AT SCOTIABANK

“The details on first pass look pretty solid. I think what they suggest is that the low-hanging fruit has been picked in terms of Canada’s job recovery and we’re transitioning to a much cooler environment. But we’re still on the positive side of the ledger so far.”

Reporting by Jeff Lewis, Fergal Smith and Moira Warburton; Editing by Denny Thomas

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