Canada Wages Speed Up as Jobs Gain for 9th Month: Key Takeaways

(Bloomberg) 

Canada’s labor market extended its longest run of gains since the 2008-2009 recession, with signs emerging that growing demand for jobs is also finally beginning to generate some wage gains.

Highlights of the Jobs Report

The country added 22.2k jobs in August, the ninth straight monthly gain, versus market expectations for a 15k gain Annual average hourly wage gains hit 1.8%, the highest since October 2016 The jobless rate fell to 6.2%, the lowest since 2008

Key Takeaways

Canada’s labor market has been on a tear, with employment gains rising at the fastest pace in almost a decade. The increase is boosting incomes and helping fuel a consumption binge that has made the country’s economy the fastest growing in the Group of Seven.

Friday’s report may also strengthen the Bank of Canada’s resolve to continue raising interest rates, particularly if wage gains – – which are still below the average of 2.6 percent since 1998 — accelerate further.

Other Details

The report was less positive than the headline number suggests. The overall number masks a sharp drop in full-time work, which was down by 88.1k. Part-time employment was up 110.4k Self-employed workers were responsible for the full increase in total employment, recording a 32.7k gain during the month. So-called employees recorded a drop of 10.4k Another negative: goods-producing industries saw their five- month run of employment gains end, posting a 13.7k drop. That was due to an 11.1k decline for manufacturers. Still, over the past 12 months, gains have been driven by full-time employment. Since August 2016, Canada has recorded a 374.3k gain in total employment led by a 213.4k gain in full- time workers. Employees accounted for 273.5k of the total gain Hours worked were up 2.2%, the biggest gain since Aug. 2015