Revised data released by Statistics Canada shows that Canada’s economy created a net of 41,700 jobs in July, far more than expectations of market analysts.
Below are reactions from Canada’s Bay Street:
Paul Ferley, Assistant Chief Economist at Royal Bank of Canada:
“A totally different story here … with the revision, suggesting a totally different picture in terms of the employment conditions in July, the very strong overall increase.”
“However year to date, the gains in employment are still fairly modest. Going forward hopefully we will see sustained increases, but at the moment certainly these revised July numbers, it’s showing a more encouraging picture, though we are not out of the woods yet.”
“Expectations were that that number was going to be a bit stronger, but this was above expectation, and with that I think it should provide a bit more of a lift for the (Canadian dollar).”
Sal Guatieri, Senior Economist at BMO Capital Markets:
“A pretty good number. A lot better than the market was anticipating. The loonie is up at least a quarter cent stronger.”
“The headline number’s double the initial consensus, expectations for the July employment gains … It was all in the private sector – 55,000 increase. The only fly in the ointment is the drop in full-time employment, but that’s a lot less than was initially reported.”
“Unemployment rate is down at 7%. So overall, this does suggest that Canada’s labor market is improving after hitting a soft patch in the first half of the year. That’s now reflecting stronger economic growth. We think GDP grew at a 3% rate in the second quarter, led by a resurgence in exports.”
“It likely indicates that the trend toward slower job growth has stopped and employment is now turning up, but again it’s just one report, so I don’t think the Bank of Canada will take a lot from the news. If we see consecutive gains in employment certainly along this order, that would change the tone at the Bank of Canada. But we would need a few more months of data to confirm that the labor market is strengthening.”
Camilla Sutton, Chief Currency Strategist at Scotiabank:
“It doesn’t change the fact that we’ve only had modest job gains in Canada this year … The quality of the jobs probably isn’t as strong as you’d like to see because they’re so heavily weighted towards part-time. However, job gains are good, and an unemployment rate that is falling with a stable participation rate is also encouraging.”
“You combine in manufacturing sales which was not only stronger than expected but the second upside surprise and last month’s was also revised slightly higher. So that too is fairly encouraging in terms of what’s transpired in the domestic economy.”
Attorney Colin Singer Commentary:
Recent developments seem to be dovetailing the rebounding US labour market. Canadian employers in the skilled trades are expressing increasing concerns about labour shortages. This is especially the case in Alberta, Saskatchewan and British Columbia. It favours those interested in applying for a Canada work permit or Canadian permanent residence (Alberta immigration, Saskatchewan immigration and British Columbia immigration programs).
Source: Financial Post