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James Knightley, Chief International Economist at ING, points out that the Canadian unemployment rate in October came in better-than-expected falling back down to 5.8%, with bulk gains in full-time work (+173,000).

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“Hidden within the report are some softer figures. The average wages  for permanent workers decelerated  for the fifth month in a row down to 1.9% YoY, so wage growth woes yet again dampen the unemployment rate.”

“The total number of employed people came in at 206,000. And the largest contributions came from the business, building and other support services sector which  by  22,000 in October (bringing  year-over-year gains to 43,000). This data is aligned with our 2019 outlook that business investment is going to take a leading role in driving Canadian growth.”

“Another monthly slowdown in wage growth has taken the shine off a near four-decade low unemployment rate.”