Canada: Employment likely to decline by 5k in May - TDS

Analysts at TD Securities are looking for the Canadian employment to decline by 5k in May (consensus: +5k), which would give back a small portion of the record 106.5k jobs created the prior month.

Key Quotes

“This should push the unemployment rate slightly higher to 5.8% while wage growth for permanent employees should drift lower to 2.5% y/y (consensus: 5.7%, 2.5%, respectively).”

“Capacity utilization for Q1 will round out the data calendar; the market looks for capacity utilization to fall to 81.0% from 81.7% across the industrial sector, which is consistent with the Bank of Canada's Business Outlook Survey reporting a smaller share of firms experiencing capacity pressures.”