Canada’s labor force survey headline looked solid on Friday, however, on drilling down it was weak in the details. Canada added more jobs than expected last month, fueled by full-time hires; it was able to drive the unemployment rate down to +7% from +7.2%.
The economy added +29.4k new jobs in January, rallying back from December’s bleak report that logged a loss of -44k positions. Breaking the numbers down further, there were a total of +50.5k full-time positions created, while -21.1k part-time jobs were lost. More importantly, and certainly a concern to Canadian policy makers, is that domestic job growth was driven mostly by the self-employed category, +28.3k to be precise. The number of paid jobs only grew a paltry +1k. Employment creation last year was the worst in four-years (+0.8% or +146k). This “distorted” monthly labor gain was able to push the unemployment rate down two ticks to +7%. This happens to be the same level as 12-months ago, which suggests that the current job growth rate is ticking over just enough to keep up with the labor force population growth.
What about the Loonie? The initial market reaction saw the CAD gather strength and trade below the psychological $1.10 handle briefly. There it seemed to have run into a brick wall of dollar buying for now. The techies would have us believe that loonie was in danger of entering oversold territory on the week. The loonies immediate reaction to a somewhat mixed jobs report would certainly back that. The CAD needs to penetrate the 1.0975 with gusto to maintain a bullish sentiment; conversely trading through its pre-job opening level 1.1075 would be dragging it back into bear territory, opening up an attack to contest USD/CAD yearly highs.
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- US Debt Ceiling Debates Could Continue Until End of Month
- US Job Growth Remains Weak
- NFP Less Than Forecast; Jobless Rate Falls
- Recovery? More US Employers Want To Slash Workers
- Canada’s Trade Deficit Exceeds Forecasts
- Fed May Revise Forward Guidance
- US Services Grow in January
- US Debt Limit Won’t Affect Rating Says Moodys
- Oil Rises As Cold Weather Seen Affecting Stockpiles
- US Stocks Could Fall 20% Says Asianomics Director
- US Debt Interest Will Reach $223 Billion This Year
- U.S. Deficit Continues to Decline
- US Yields Falling Following Weakest ISM Manufacturing Since June
- US Stocks Suffer Worst Sell Off Since June
- U.S. Congress Urged to Act on Debt
- IMF: Canada may have to Reconsider Budget Plan
- Gold Rises Thanks to Safe Haven Appeal
- US Treasurer Warns Debt Ceiling Will Be Hit Very Soon
- Bernanke To Join Washington DC Think Tank
- Janet Yellen Sworn in As Federal Reserve’s Chair
- Canada Gains 29,400 Jobs in January
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