Canadian employment rose a modest 13,200 in October

(November 11, 2013 )

·          Canadian employment in October 2013 rose a modest 13,200 although this was slightly above both market expectations of an 11,000 gain and September’s increase of 11,900.·          The October unemployment rate unexpectedly remained unchanged at 6.9%.·          The overall increase in employment was led by service-producing jobs rising by 25,400 which more than offset a 12,200 drop in goods-producing.·          Canadian firms continued to take on workers in October at pace close to the monthly average increase of 12,600 duringthe first three quarters. This does not represent a particularly robust pace of job creation as it only slightly outpaced growth in the labour force thereby resulting in minimal downward pressure on the unemployment rate.As a result, today’s report continues to weigh in favour of the Bank of Canada maintaining highly accommodative monetary conditions. Our current forecast assumes that the overnight rate of 1.00% will be retained going into 2015.