Canada jobs preview: Positive expectations - Wells Fargo

Analysts from Wells Fargo, warned ahead of Friday’s Canadian employment report, that numbers tend to be quite volatile month to month. Market consensus expect a positive change in employment of 10.000 in July, after a decline of 700 in June.

Key Quotes:

“In June, Canada employment declined by a weaker-than-expected 700 jobs. This came on the tails of a strong job gain of +13,800 in May. Much of June’s declines were in the goods-producing and manufacturing sectors, while the service sector added more than 45,000 jobs on the month. Year to date, Canadian jobs have had a total net gain twice in the past six months.”

“In that context, it is not surprising that the forecasts for July jobs report, which comes out next Friday, are expecting positive net job growth with consensus at 10,000.”

“Canada’s unemployment rate is expected to tick back up to 6.9 percent in July from 6.8 percent in June, nearing the 7.0 percent to 7.3 percent range seen during most of the past year.”