Strong Canadian Payrolls
The Canadian economy added a net +32.3k jobs in March on a seasonally adjusted basis, all of which were in the full-time category. Market expectations were for a net gain of +20k.
- Full Time Employment Change: +68.3k vs. -39.3k prior
- Part Time Employment Change: -35.9k vs. +54.7k prior
- Participation Rate: 65.5% v 65.5% prior
Canada’s unemployment rate was unchanged at +5.8%% last month as the labor force expanded and full-time hiring surged, partially retracing steep job losses that took place in January.
The loonie has caught a bid on the strong report, currently up +0.15% at CAD$1.2751
The pace of hiring stateside slowed in March and the unemployment rate held at a 17-year low.
U.S nonfarm payrolls rose a seasonally adjusted +103k, a sharp slowdown from February’s gain of +323k (revised).
The unemployment rate was a seasonally adjusted +4.1% for the sixth consecutive month.
Figures for January and February were revised down, subtracting -50k jobs from the first two months of the year. The U.S added +326k in February and +176k in January.
Note: In Q1, employers have added an average of +202k workers to payrolls, outpacing last year’s average growth of +182k per report.
A tighter labor market should also produce better wage growth, but so far that’s failed to materialize. Average hourly earnings for all private-sector workers increased +8c to +$26.82. Wages rose +2.7% y/y in March.
Stock futures have edged slightly lower after the release, while the U.S 10-year Treasury yield has edged lower, down -2 bps to +2.8%, while the USD has slipped -0.2% against G7 currency pairs.