- 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
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.