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U/E Rate Sees Rare Decline On Surprisingly Tepid Labour Supply [2/2]

CANADA DATA
  • The unemployment rate offered the most hawkish surprise of the January jobs report, at 5.67% (cons 5.9) after 5.77% in Dec, for the first month it hasn’t increased on an unrounded basis since Mar’23.
  • Not only was employment stronger than expected but very strong working age population growth didn’t show up in broader labour force participation.
  • Population and labour force growth can see widely different month to month readings but labour force growth equivalent to just 20% of population growth over the past three months is markedly lower than other 2023 readings since population growth has surged with immigration.

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