The latest data on the Canadian labour market has smashed expectations with a large increase in the employment change coupling a drop in the unemployment rate. With consensus estimates according to Bloomberg showing a print for the monthly employment change in the region of -10k, the +48.3K was substantially better, and the fall in the unemployment rate to 6.8% further supported the strength of the release.
Whilst today’s reading is strong there are some signs beneath the surface that it could be slightly misleading. If we look at the composition of the jobs added we can see that there has been a large pick up in temporary jobs with this metric rising to its highest level in 5 years.
In addition we can also note that the majority of these are part-time (green line). If we focus solely on the full time level of employment this has been fairly flat, or even drifting lower for the past couple of years.
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