Canadian hiring turns negative in October - TD Securities

The number of people employed in Canada edged lower in October following job losses in the manufacturing and construction sector

The number of people employed in Canada edged lower in October following job losses in the manufacturing and construction sector. Sean Kilpatrick CP

The Canadian dollar dropped on the report, falling 0.4% to C$1.3231 per US dollar at 3:22 p.m.in Toronto trading.

"The unemployment rate was unchanged at 5.5%".

"The overall trend in employment is still respectable so I don't think it will by itself push BOC to an immediate cut, but the risks are clearly rising", Vassili Serebriakov, FX strategist at UBS Securities LLC, said by email.

Commenting on the latest jobs report from Canada, "The Canadian labour market shed 1.8k jobs in October (consensus: +15k), and the underlying details were soft as the economy added part-time positions while losing full-time jobs", said TD Securities analysts.

"In the big three categories of job growth, wages and unemployment, B.C. performed exceptionally well in the month of October".

Data from Statistics Canada showed that employment dropped unexpectedly in the month of October.

Following the lackluster Canadian jobs report and housing data the probability that a Bank of Canada interest rate cut will be delivered at the central bank's next meeting jumped to 21.7%, which is noticeably from a 14.8% reading the day prior, according to overnight swaps pricing. Wages for permanent employees rose by 4.4%, according to the nation's number crunchers. Employment in the "other services" industry also fell by 18,000.

On a year-over-year basis, employment has still grown by 443,000 or 2.4 percent, said Statistics Canada. The number of self-employed workers in October fell by 27,800.

The value of residential permits was down 10.7% to C$5.1 billion, Statistics Canada said, with declines reported in eight of the ten Canadian provinces.

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