Canada August employment +39.9K vs +15.0K expected

<ul><li>Prior was -6.4K</li><li>Full time +32.2K vs +1.7K prior</li><li>Part time +7.8K vs -8.1K prior</li><li>Participation rate 65.5% vs 65.6% prior</li><li>Average hourly wages permanent employees +5.2% y/y vs +4.7% expected (+5.0% prior)</li><li>Total average hourly wages 4.9% y/y vs 5.0% prior</li><li>Unemployment rate 5.5% vs 5.5% prior</li><li>Participation rate 61.9% vs 62.0% prior</li><li>Involuntary part time rate 18.9% vs 17.2% a year earlier</li></ul><p>Employment grew 40K in the month but was outpaced by 103K in population growth. That's an important dynamic as Canada goes full-tilt on immigration. It's now seven straight months that population growth has outpaced job growth.</p><p>USD/CAD has fallen sharply on this down to 1.3620 from 1.3660. Macklem was hawkish yesterday and specifically highlighted wage growth as something the BOC is watching carefully. </p><p>The population side of the equation is going to be a key factor in the year ahead with 1 million people set to be added to the country of 40 million and now 900,000 foreign students studying in Canada — up from 300,000 a few years ago. </p>

This article was written by Adam Button at www.forexlive.com.