Release of the Canadian jobs data at 1:30 pm GMT triggered moves on the Canadian dollar market. Report turned out to be much better than expected with a big gain in employment. This led to a strengthening of CAD and a drop in USDCAD exchange rate.
Employment change: 150k vs +15k expected (+104.0k previously). Gains were driven primarily by people aged 25 to 54 (+100,000; +0.8%), split evenly between women and men in this group. Employment also increased among people aged 55 and older (+43,000, +1.0%), while it was little changed among youth aged 15 to 24. The largest employment increases were in Ontario (+63,000; +0.8%), Quebec (+47,000; +1.1%) and Alberta (+21,000; +0.9%). Employment declined in Newfoundland and Labrador (-2,300; -1.0%). There were gains across several industries, led by wholesale and retail trade (+59,000; +2.0%), health care and social assistance (+40,000; +1.5%) and educational services (+18,000; +1.3%). At the same time, employment declined in transportation and warehousing (-17,000; -1.7%). The number of employees grew in both the private (+115,000; +0.9%) and public (+32,000; +0.8%) sectors.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Employment has been on upward trend since September. Source: Statistics Canada
Employment gains spread across several industries in January. Source: Statistics Canada
Unemployment rate: 5.0% vs 5.1% expected (5.0% previously) signaling that the Canadian labor market remains stubbornly tight. The total number of unemployed people stood at 1.0 million, similar to the level observed since the summer of 2022. Among people aged 25 to 54, the unemployment rate edged down (-0.1 percentage point to 4.1%), while it increased for people aged 55 and older (+0.2 percentage points to 4.5%) and was little changed for youth aged 15 to 24. 63.9% of unemployed people in January had been unemployed for a relatively short amount of time - between 1 and 13 weeks. Long-term unemployment was 15.8%, down from 19.9% in January 2022. Meanwhile, employment increased by 150,000 and the size of the labour force has continued to grow, as an additional 153,000 people joined the labour force, boosting the participation rate to 65.7%.
Full time employment :121.1K vs +84.5K prior
Part time employment: 28.9K vs +19.5K prior
Participation rate: 65.7% vs 65.0% prior
Avg hourly wages: 4.5% y/y vs +5.2% prior
USDCAD pair fell sharply an dis testing support at level at 1.3375. Source:xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
