Canada’s Key Jobs Report out on Friday
Canada’s Key Jobs Report out on Friday
No economic reports are due out in Canada today and the calendar is light tomorrow leading into Friday’s important employment report - the final piece of information ahead of the Bank of Canada’s interest rate decision next week.
Canada’s labour market has remained resilient as evidenced by the 30,000 monthly job gain averaged since the beginning of the year. We are expecting another gain in May, albeit a below-trend one, consistent with our view calling for sub-1% second-quarter GDP growth. The unemployment rate is forecast to remain at 6.1%, an historically low level. Average hourly earnings of permanent workers, a preferred Bank of Canada measure of wage inflation, will also be closely watched. Growth in this measure moderated to 4.2% from 4.7% in April, although it was still much higher than the 1.7% inflation rate.
From a policy perspective, this will be the last key economic report in front of the Bank of Canada before its June 10th rate-setting meeting and a soft report will reinforce market expectations of a 25 basis-point cut in the policy rate.
RBC Financial Group
http://www.rbc.com
The statements and statistics contained herein have been prepared by the Economics Department of RBC Financial Group based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness. This report is for the information of investors and business persons and does not constitute an offer to sell or a solicitation to buy securities.
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