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Canadian jobless rate drops in November to all-time low

Canada added a net of 94.1k jobs in November. Even with 77.2k more Canadians in the labor force, the jobless rate dropped to 5.6 percent, the lowest pace since data collection started in 1976. Even better, the see-saw pattern of the summer was not seen, with 89.9k net full time jobs added, while part-time work was effectively on hold at 4.1k. The gains were also by and large in the private sector, and in employment as the number of self-employed Canadians rose just 7.2k in November.

Job gains were mainly seen in older Canadians. Core aged workers led the way added 48.8k net gain in employment among those aged 55+ was 38.8k. Employment rose 6.4k for those aged 15-24.

Looking at the industry, it was a pretty decent mix: goods-producing industries added 26.9k on gains in construction, while the services side of the economy added 67.2k on net, aided by professional services and healthcare. Throughout the provinces, it was usually a positive story. Alberta stands out, as its jobless rate dropped a full percentage point to 6.3 percent – the largest single-month dropped on record.

In spite of solid employment gains, wage growth decelerated for a sixth consecutive month. Hourly wages for permanent employees rose 1.5 percent year-on-year. On the contrary, the aggregate hours worked was up a solid 2.1 percent year-on-year, reflecting a strong 0.9 percent monthly gain. This is a volatile series, and so dialing back the lens a bit helps. The picture is still encouraging: employment growth now stands at 1.2 percent year-on-year, driven by full time work and private sector gains, noted TD Economics in a research report.

“As Governor Poloz's speech yesterday made clear, energy sector developments and softer momentum are weighing on the Bank of Canada's minds, and will likely delay the next policy interest rate hike into Spring 2019. Today's labour market report is definitely an encouraging one, but the wage signal reinforces that there is little risk from an inflation control perspective in waiting a bit for their next move”, said TD Economics.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 20.8018, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -32.1779. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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