Canada December Employment - Strong job growth but again flattered by the public sector
Canada has followed a healthy 50.5k increase in November employment with a substantially stronger 90.9k increase in December, though the acceleration in full time work to 57.5k from 54.2k was marginal. While some of the detail is less impressive, the data suggests the economy is gaining momentum, assisted by Bank of Canada easing, though the treat of tariffs makes it unclear whether this recent momentum can be sustained.
It should be noted that both the November and December gains were flattered by strength in public sector work, which rose by 40.4k in December, though this still left healthy gains of 26.7 in the private sector and 23.7k in self-employment. In November most of the monthly gains came from a 45k rise in the public sector. December’s job gains were broad based with even manufacturing at 13.1k healthy despite the tariff threat.
Unemployment’s slipped to 6.7% from 6.8% despite a 66.7k increase in the labor force which followed an exceptional 137.8k increase in November. Despite the modest fall in unemployment, the rate is still above the 6.5% seen in September and October.
Wage pressures appear to be easing, with yr/yr growth for permanent employees slipping to 3.7% from 3.9%, extending a sharp slowing from 4.9% in October. Despite the stronger than expected headline, the data is not clearly strong enough to rule out further Bank of Canada easing in January.
