Canada: Jobs data won't do much to goad the BoC into action - TDS

Analysts at TD Securities point out that the Canadian economy has added 9k jobs in December, roughly in line with market expectations (consensus: 10k, TD: 15k) while the unemployment rate held steady at 5.6%.

Key Quotes

“The full-time/part-time split was unfavourable (FT:-19k, PT: +28k), but over 2018H2 hiring has been healthy at +17k full-time jobs per month versus +13k part-time positions.”

“This report won't do much to goad the BoC into action; wage growth remains sluggish at +1.5% y/y for permanent employees which supports the idea the that there is still room for additional "non-inflationary growth".”

“At the same time, the Bank will be comforted to see employment increasing at 30k a month in 2018H2, which argues firmly against the speculation around rate cuts that seems to be creeping in from the US.”