Canada April employment 15.3K vs. 55.0 K estimate

Canada employment change

Canada employment change shows a 15.3K increase in April
  • prior report 72.5K
  • employment change 15.3K vs. 55.0K estimate.
  • Unemployment rate 5.2% vs 5.2% estimate. Last month came in at 5.3%. The rate is a new record low
  • full-time employment -31.6K vs 92.7K last month
  • part-time employment 47.1K vs -20.3K last month
  • participation rate 65.3% vs 65.4% last month
  • the adjusted unemployment rate – which includes people who wanted the job but did not look for one – came in at 7.2% below the pre-pandemic levels 7.4%
  • unemployment rate for those 25 to 54 continues to fall. The rate fell -0.2% to 4.3% in April which was the lowest recorded rate since comparable data became available and 1976
  • goods producing -16.0 K. Construction fell -20.7 K. Manufacturing was up 4.7 K.
  • service +31.4 K. Public administration +16.5 K. Information, culture and recreation +12.6 K. Education services +12.5 K. Professional, scientific and technical services +15.1 K. On the negative side wholesale and retail trade -17.9 K. Healthcare and social assistance -11.5 K
  • average hourly wages 3.4% vs. 3.7% last month

Overall the data is a bit mixed with lower jobs gains but the unemployment rate at record low levels.

Concerns for the BOC is the impact of inflation. The unemployment rate at record low levels and concerns about a tighter labor market going forward as a result of retirees, the BOC can not afford to have a too hot economy (housing is still a big fuel). As a result, the central bank will likely continue their course of following the Fed higher.

Unemployment rate

Canada unemployment rate at record low level

/ Inflation

Inflation

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex? The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living. The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market. also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex? The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living. The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market. also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.
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