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Data released today, showed that Canadian employment increased by 11K in October. According to National Bank of Canada analyst, Matthieu Arseneau, private and full-time positions accelerated in second half of 2018.

Key Quotes:

“The Canadian jobs report for October was slightly below expectations for the headline number but the details of the report were rather good. For one, the 20K jump in private sector jobs was all the more impressive given that it followed a 96K surge in September.”

“The gain in full-time employment will remain a key source of support for consumption and the housing market in the months ahead. Also, note that despite the recent improvement in the Labour Force Survey (LFS), the 2018 performance is still way below the rosier picture shown by the establishment survey (SEPH). In other words, there is still room for improvement for the LFS in the months ahead.”

“As for the weak showing for average hourly earnings on a year on year basis, we are not alarmed. Firstly, keep in mind that this data is highly volatile. Secondly, according to Business Outlook Survey published two weeks ago by the Bank of Canada, labour shortages are the most intense in a decade. Also, the CFIB reports that shortages are being felt for both skilled and unskilled workers.”

“This morning’s labour report remains conducive to further rate hikes by the Bank of Canada.”