According to National Bank of Canada’s analysts, Krishen Rangasamy, employment data from the US suggests that cleary the labour market is getting tighter.
Key Quotes:
“The U.S. labour market is creating jobs at the fastest pace since 2015 according to the establishment survey. The latter showed non-farm payrolls rising a consensus-topping 201K in August, pushing up the tally for the first eight months of the year to a stunning 1.6 million. Also encouraging, given their tendency to move in synch with the economic cycle, were further gains in construction and temporary employment which point to continued expansion in Q3.”
“Clearly the U.S. labour market is getting tighter, and wages are heating up as a result. The private sector’s average hourly earnings rose 2.9% on a year-on-year basis, the highest since May 2009. And wage growth is not isolated to a single sector.”
“Most major industries in the U.S. are now seeing stronger wage growth than last year. The employment data will further reinforce the Federal Reserve’s view that tighter monetary policy is warranted.”
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