TORONTO (Reuters) – Canada’s economy added 76,000 jobs in January and the jobless rate edged down to 6.6%, Statistics Canada data showed on Friday.
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COMMENTARY
ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATES STRATEGY AT TD SECURITIES
“76,000 jobs is substantially more than we’d expected and it fits with the Bank of Canada’s relatively optimistic narrative around the Canadian economy.”
“I still think a March Bank of Canada (interest rate) cut is likely but if we see this data continue through the first quarter the Bank of Canada may become increasingly confident that they’ve achieved a soft landing.”
DOUG PORTER, CHIEF ECONOMIST AT BMO CAPITAL MARKETS
“It is an impressive number, especially given the fact that December was also pretty robust as well. Most of the details were something positive as well. So most important thing is that the unemployment numbers fell while most were looking for an increase. I think that alone speaks volumes.”
“Clearly if it was not for the potential trade war we would be talking about the Canadian economy turning a corner and I think that we are seeing that in a number of different statistics whether it is job numbers or something like auto sales. So it does look like the decline in interest rates is really beginning to help the domestic economy turn around.”
ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS
“Overall, this is clearly a very positive report once again. However, even after the improvement seen during the past two months, the unemployment rate is still only just back to where it stood in October, and is still consistent with a labour market with plenty of slack. We continue to think that even lower interest rates will be needed for the economy to fully absorb that slack, particularly given heightened trade uncertainty which could impact hiring decisions ahead.”
(Reporting by Fergal Smith and Divya Rajagopal; Editing by Caroline Stauffer)
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