Canada's Shift In The Labor Force Sends Loonie Up 1%
- Unemployment is just a notch higher at 6.3% compared to analysts estimates at 6.2%
- Net change in Canadian employment for October came in line at 35.3k
- Part-time employment falls by -53.4k, full-time employment increases by +88.7k.
- Jobs report pushed the Loonie to 1.2729
In October, Canada added a meager 35k jobs causing the unemployment rate rise by 10 basis points over the 6.2% estimate to 6.3%. Overall, the workforce shifted from part-time employment (-53.4k) to full-time employment (+88.7k). Total hours worked rose by 2.7% yoy. The unemployment rate has fallen 0.7% over the last months to October. The industries that lead the rise in employment include “other services,” construction, information, culture and recreation, and agriculture.
Notably, there was a shift in the demographics of the labor market, particularly among youth workers. Workers seeking employment between ages 15 to 24 found less work last month as the unemployment rate rose 0.8% to 11.1%. Despite more youth in the labor market in October participation remains low. For more details on this morning’s jobs report see Labor Force Survey, October 2017.
Here are a few prints that have negatively impacted the Canadian Dollar this morning:
- CAD Participation Rate (OCT): 65.7%, from 65.5%
- CAD Unemployment Rate (OCT): 6.3% versus 6.2% expected, from 6.2% previously
- CAD Full Time Employment Change (OCT): 88.7k, from 112k previously
- CAD Part Time Employment Change (OCT): -53.4k, from -102k previously
Chart 1: USDCAD 15-minute Chart (November 3, 2017 Intraday)
Today’s reaction mirrors the reaction we saw in the Loonie after the BOC rate hike. Immediately following the prints the dollar weakened hitting a fresh low in November. At the time that this report was written the US Dollar dipped as much as -0.95% against the Canadian Dollar trading at 1.29.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.