**As seen in Risk In The Week report 09/01/23, subscribe at cablefxm.co.uk/reports
July jobs report surprised economists’ expectations of a 25.0K rise as the month shredded 6.4K jobs vs the prior +59.9K. This was the third time over the course of the last 12 months that the Canadian labour market saw losses. The unemployment rate ticked up to 5.5% vs. the prior 5.4%, this is half a percentage point higher than at the beginning of the year. The goods-producing industries posted job declines while services and manufacturing rose, the latter grew by the slowest pace since April at 5.2K. Broadly speaking, the report is welcomed by the BoC, however, hourly wages jumped to 5.0% Y/y vs the prior 3.9%. Analysts at Scotiabank reminded us that distortions might have affected the July figure and expect a rebound of 35K in August. They added that they would be more surprised by a softer number than a stronger one.
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