Canada: What Went Up in the Labour Market is Now Coming Down

Canada’s labour market softened after October’s surprise surge, with employment up a meagre 10k jobs in November 2022. Weakness reinforces the notion that central bank rate increases are slowing consumption, and it appears that this is dominating any positive effects from the filling of job openings. We continue to track real GDP growth above 1% (q/q ann.) in the fourth quarter of this year and expect a 25bp hike from the Bank of Canada next week.