MNI DATA ANALYSIS: Canada Jobs +11.2K But Wage Growth Slows>

By Yali N'Diaye

     Ottawa (MNI) - The Canadian economy added 11,200 jobs in October, 

when the unemployment rate decreased to 5.8% from 5.9%, data from 

Statistics Canada showed Friday. 

     Headline numbers were better than analysts' expectations in a MNI 

survey, which had centered on a 10,000 job gain and a stable 

unemployment rate of 5.9%. 

     On the positive side, October's gain was led by a full-time 

employment increase of 33,900, indicating stronger business confidence. 

Part-time employment was down 22,600. 

     Year-to-date, employment growth has been driven by full-time 

positions, with a gain of 114,300, while part-time positions decreased 

54,300. 

     - LOWER PARTICIPATION RATE 

     However, the report also contained some soft spots, starting with a 

0.2-percentage point decline in the participation rate to 65.2%, the 

lowest since October 1998. 

     In particular, the participation rate for youth, a category closely 

monitored by the Bank of Canada, decreased to 62.4% from 63.5%, reaching 

its lowest level in 20 years. 

     - WAGE GROWTH SLOWS 

     Another soft spot was a further slowdown in the pace of wage 

growth, which is likely to keep the BOC's wage-common measure below the 

3% level where the BOC estimates that it should be at this point of the 

cycle. The central bank estimates that wage-common, a measure of 

underlying wage pressures, is rising at a year-over-year pace of about 

2.3%. 

     Average hourly wages for permanent workers were up 1.9% 

year-over-year in October, the lowest rate since August 2017 and the 

fifth consecutive monthly slowdown. 

     Still, the BOC expects wage and income growth to pick up in the 

coming quarters. 

     - SERVICES, PRIVATE SECTOR LEAD 

     Job gains in October were led by the services sector, with 

employment up 23,200 on the back of an 18,400 increase in September. 

     Goods-producing sectors, on the other hand, posted a 12,000 

decrease after rising 44,900 in September. 

     All major goods categories but one were down, including a 3,400 

drop in construction. There was a 1,700 gain in manufacturing. 

     Within services, declines in finance, insurance, real estate, 

rental and leasing (-14,500) and in other services (-17,400) were offset 

by increases in business, building and other support services (+22,000) 

and wholesale and retail trade (+19,300), as well as health care and 

social assistance (+15,300). 

     Employment was led by the private sector (+20,300), while the 

number of public sector employees fell 30,800. 

     --MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

     [TOPICS: M$C$$$,MACDS$]