- Doug Porter, chief economist at BMO Financial Group
Canada's employment rose more than expected in October, with most of the gains coming from temporary workers hired to prepare for federal election. The economy created 44,400 new jobs in the reported month, marking the fourth consecutive monthly rise, pushing the unemployment rate to 7% from 7.1%, according to Statistics Canada. The public administration category increased by 32,000 on temporary work related to the election. Yet, employment excluding election jobs still exceeded the 10,000 gain predicted by economists. The labour market has been one of the brightest spots of the Canadian economy this year, with hiring remaining solid through an oil shock that derailed output in the first half of the year.
Retail and wholesale companies hired 17,600 people in October, and food service and accommodation employment rose by 12,900. Bank of Canada Governor Stephen Poloz has said gains at non-energy companies can lead a recovery from the commodities slump that will take until around mid-2017 to complete. Nevertheless, the Loonie Dollar declined after the report showed the US economy added 271,000 new jobs last month, the most this year, adding to signs the Fed may hike interest rates this year. The Canadian Dollar lost 0.5% to C$1.3237 per Greenback.
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