Canadian labor market adds jobs, jobless rate falls to 5.7 pct in December

Canada’s labor market saw extended gains in December. The nation added 78.6k net positions in the month. In spite of more Canadian being drawn to labor markets, the gains were sufficient to push the jobless rate to 5.7 percent in December, the lowest since 1974.

Job gains were driven by part time employment again, which added 54.9k net positions, but full-time employment also rose by 23.7k. Full time employment rose for the fourth consecutive month, rising a healthy 2.7 percent year-on-year. Jobs were seen mainly among employees with 50.4k added in December. These positions tilted slightly towards the private sector, with the public sector adding 22.1k positions. Self-employment rose 28.2k on net.

Industry-wise, the services side of the economy led the way, adding 72.6k positions. Finance, real estate, insurance, educational services and other services were notable standouts. The goods-producing side of the economy witnessed a more modest 6k net positions added as gains in natural resources and construction countered modest weakness in manufacturing and agriculture.

Province-wise, all saw net hiring in the month; however, Alberta and Quebec topped the leader board. The hourly wage rate rose again, reaching 2.9 percent year-on-year. Hours worked also strengthened, rising 3.1 percent, owing to strong sequential gains.

The data released today should act as further sign that despite hiccups in some areas of the economy, the underlying trend remains sound. While risks to the outlook continue and might hurt the overall rate of rate hikes, another policy interest rate hike in the near term seems almost certain, stated TD Economics in a research report.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bullish at 100.815, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -53.9749. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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