Canadian Dollar: Loonie Sinks on Weak Jobs Report, Housing

Canadian Employment Change Chart of Historical Data

Windsor's jobless rate sees increase for the month of October

Following the lackluster Canadian jobs report and housing data the probability that a Bank of Canada interest rate cut will be delivered at the central bank's next meeting jumped to 21.7%, which is noticeably from a 14.8% reading the day prior, according to overnight swaps pricing.

In October a year ago, Victoria's unemployment rate was 3.9%.

The Canadian dollar weakened to a three-week low of $1.3232 to the US dollar, or 75.57 cents USA, after the jobs data was released. "The province created 15,300 jobs, more than any other province - the vast majority being full-time jobs", he said. In Gatineau the unemployment rate increased slightly to 4.5 per cent as labour force growth outpaced hiring.

October's slip was driven by the loss of 16,000 full-time jobs, too steep to be offset by a gain in part-time employment.

BC Liberals, on the other hand, said in a statement that British Columbia has lost nearly 10,000 jobs over the past five months and accused Premier John Horgan and his NDP government of having no jobs plan in sight.

Ontario accounted for most of the roughly 23,000 manufacturing positions that were lost in the month. The decrease came as the local economy added 4,600 new jobs.

Building permits fell 6.5 percent in September following a rise of 5.6 percent in the previous month.

Almost 90 per cent of last month's job surge took place on the Ottawa side of the river, where 8,500 jobs were created, compared to 1,200 in Gatineau. The data suggest that, with the jobless rate hovering near an historic low, a tight labour market has started to result in stronger wage gains.

But that contrasts with "much softer" economic growth (GDP), noted CIBC analyst Royce Mendes said in a research note. The unemployment rate in B.C. was little changed at 4.7%, the lowest in Canada.

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