Canada jobs, wage gains blow away expectations, up chances for rate hike
Reuters, October 6, 2018 – According to data released on Friday, Canada’s economy more than tripled expectations in September by generating 63,800 jobs, and salaries have continued to rise. This has increased the likelihood of another rate hike.
According to Statistics Canada, the unemployment rate held steady at 5.5% for a third consecutive month. 20,000 new jobs would be created overall, according to analysts surveyed by Reuters, and the unemployment rate would tick up to 5.6% from 5.5% in August.
From September 2022, the average hourly wage for employees on a permanent basis increased by 5.3%, up from an annual increase of 5.2% in August.
The market expectations were completely exceeded by today’s employment report. According to Franklin Templeton Investment Solutions portfolio manager Michael Greenberg, wage growth is also exceeding market estimates.
“Despite the Bank of Canada’s aggressive rate increases, it is evident that demand is still strong and that businesses are still adding employees. This implies that we may very possibly experience another rate increase in November or December,” said Greenberg.
