- Unemployment Rate in Canada held steady at 5% in April.
- Net Change in Employment: 41,400 vs 20,000 expected.
- USD/CAD rises above 1.3500 as US jobs numbers surpassed expectations.
The data published by Statistics Canada revealed on Friday that the Unemployment Rate stayed unchanged at 5% in April. This reading came in slightly better than the market expectation of 5.1%.
Further details of the publication revealed that the Net Change in Employment rose by 41,500, surpassing analysts' estimate of 20,000. The Participation Rate stay unchanged at 65.6% and the annual wage inflation remained at 5.2% in March.
Key takeaways from the report:
- The unemployment rate was 5.0% in April, unchanged since December 2022.
- Employment increased in wholesale and retail trade (+24,000; +0.8%); transportation and warehousing (+17,000; +1.6%); information, culture and recreation (+16,000; +1.9%); as well as in educational services (+15,000; +1.0%). Employment decreased in business, building and other support services (-14,000; -1.9%).
- On a year-over-year basis, average hourly wages rose 5.2% (+$1.66 to $33.38) in April (not seasonally adjusted).
- Employment rose by 41,000 (+0.2%) in April. Since February, monthly employment growth has averaged 33,000, following cumulative increases of 219,000 in December 2022 and January 2023.
- Part-time employment increased by 48,000 (+1.3%) in April, while full-time employment held steady. This was the first notable increase in part-time work since October 2022.
- Compared with 12 months earlier, the number of private sector employees rose by 299,000 (+2.3%) in April 2023, while there were 81,000 (+2.0%) more people working in the public sector.
Market reaction
The USD/CAD rose initially to 1.3505 after the jobs reports from Canada and the US, and then pulled back toward the 1.3490 area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.