Details of the June employment report from Statistics Canada:
- Prior was +58.9K
- Full-time +64.8K
- Prior full-time +30.9K
- Part-time -71.2K
- Prior part-time +27.9K
- Unemployment rate 6.8% vs 6.9% exp
- Prior unemployment rate was 6.9%
- Participation rate 65.8%
- Prior participation rate 65.9%
It's all about the massive jump in full-time employment for the second consecutive month. The headline was a touch better than expectations but adding that many full-time jobs is boon to consumer spending and argues the economy remains solid despite a fall in commodity prices.
The Bank of Canada will be happy to sit on the sidelines and see how it plays out but for now, adding 95K full time jobs in two months will keep them happy.
The Canadian dollar rallied on the report, pushing USD/CAD down to 1.2657 from 1.2705. I expect to see further declines but oil will a key driver with Iran in focus.
Canadian full-time employment with a four-month moving average.