Canada: Hiring continued in August at a very impressive pace – NFB

Canadian data released on Friday presented a decline larger-than-expected of the unemployment rate and a net increase in jobs of 90K. According to National Bank of Canada analysts, the report showed a very impressive job creation despite the uncertainty caused by the COVID-19. 

Key Quotes:

“Hiring continued in August at a very impressive pace despite the uncertainty caused by the Delta variant. We are particularly pleased to see that job creation is skewed toward full-time jobs for a second consecutive month, which is positive for wages and economic growth. Total hours worked are increasing at an annualized rate of 5.1% with one month left in the quarter (after -3.8% in Q2), suggesting a rebound in GDP after a contraction in Q2.”

“With the easing of sanitary measures this summer, Covid-19-affected industries are recovering rapidly, recording a cumulative gain of 345K over the past three months.”

“While employment in these industries remains 5.6% below its pre-pandemic level, total employment is now just 0.8% below the pre-pandemic peak. This performance compares favorably to the three previous recessions after 18 months and favorably compares to the slow recovery seen south of the border.”

“We believe there is room for more job gains in the months ahead. CFIB data continues to show a strong labor shortage in August, with as many as 49 percent of respondents reporting that a shortage of skilled labor was a factor limiting production, compared with 37 percent for unskilled workers.”