Fiper | Employment Change and the unemployment Rate

Employment Change and the unemployment Rate

Employment change

Determines the level of change in the level of employed people during the past month, with the exception of the agricultural sector, and job creation is an important indicator of economic recovery, which is largely related to the conditions of human resources and a large part of GDP
The Canadian economy created 104,000 jobs in December of 2022, easily exceeding market expectations of 8,000 jobs. Full-time work increased by 84.5k, and part-time work increased by 19.5k. Employment growth led to an increase among young people aged 15-24, offsetting the cumulative losses observed for this group from July to September. The number of workers in the private sector increased while it remained stable in the public sector. There have been widespread employment gains across many industries, including construction, as well as transportation and warehousing. Employment increased in Ontario, Alberta, British Columbia, Manitoba, Newfoundland, Labrador and Saskatchewan in December. There was little change in other provinces. In December, 8.1% of employees were absent due to illness or disability, up from 6.8% in November. This was higher than the pre-pandemic average of 6.9% recorded in December from 2017 to 2019.

Outlook for today's statement and how it will affect the currency

The estimate for today's data is 15,000 jobs
If the data is released above expectations, the effect will be positive on the currency and vice versa

Unemployment Rate

The unemployment rate determines the proportion of the total labor force that is not employed and actively seeking a job during the past quarter
Canada's unemployment rate was at 5% in December of 2022, the lowest since a record low of 4.9% in June and July, down from 5.1% the previous month and beating market expectations of 5.2%. The result indicated that Canada's labor market remains tight, adding leeway for the Bank of Canada to tighten despite recent indications that rate hikes should end soon. The number of unemployed decreased by 12.7 thousand to 1,036,900, driven by a decrease in the unemployment rate among men of basic age, while female unemployment and youth unemployment remained relatively unchanged. Meanwhile, the number of workers increased by 104,000 to 20,807,100, with notable increases in professional, scientific and technical services (1.3% to 1,844,000) and construction (2.3% to 1,554,300). Meanwhile, the labor force participation rate rose 0.2 percentage point, to 65%.

Outlook for today's statement and how it will affect the currency

Markets expect the unemployment rate to be 5.1% today
In the event that the unemployment rate records a reading higher than expected, we will have a negative impact on the currency, as it indicates a rise in unemployment, and vice versa