Canada: Surprise Job Surge Suggests Bank of Canada’s Job Ain’t Done Yet

It was hard to find signs of weakness in Canada’s labour market in the October 2022 data, as net total employment jumped by 108k jobs to recoup the losses witnessed from June to August. Well-above consensus job creation clearly impacts the economic growth calculus for Q4-2022, and contributions from increased labour supply are bullish for hiring to the extent that immigration continues to rise. For the Bank of Canada, strong employment and wage gains mean more pressure to continue its rate hiking cycle, perhaps for longer than previously anticipated.