U.S Job Growth Slows while Canada Job Numbers Explode

• The U.S economy added +148k in December, almost all of them in the private sector (Previous +239k vs. +193k e).
• The U.S service sector deeply hit.
• Well below the 2017 monthly average of +171k jobs added but is enough to keep up with population growth and chip away at unemployment.
• The labor-force participation didn’t budge in 2017 despite the +2m  jobs added. Participation rate stands at +62.7% in December.
• The average hourly paycheck for private sector workers grew +2.5% in 2017. That suggests the labor market still has some slack despite the low unemployment.
• Hourly wages grew +9c , or +0.34%, in December from a month earlier.
• U.S yield curve 2/10 see a ‘bull’ flatter being priced in at +49 bps

• Canada’s unemployment rate dropped to a four-decade low in December and job creation exceeded expectations for a second consecutive month.
• The Canadian economy added a net +78.6k jobs in December vs. market expectations of +2k.
• Canada’s jobless rate records a new low of +5.7%, down from 5.9% m/m – the lowest unemployment rate in four decades. Expectations were looking for the jobless rate to tick up to +6%.
• 2017 was the best year for Canadian job growth since 2002.
• Full time employment change: +23.7K vs +29.6K prior – Part time employment change: +54.9K vs. +49.9K prior
• Participation rate: 65.8% v 65.7% prior

This morning’s strong data would likely increasing pressure on the Bank of Canada (BoC) to hike interest rates much sooner than the market has being calculating. Odd’s for a Jan hike next week are currently trading at +50%.

​The CAD is up +0.88% at C$1.2369​