Canadian employment change for July. -2.8k Expected: 25k after -1.4k in June reading

  • Unemployment rate. 6.4% Expected 6.5% vs. 6.4% in June

  • Average hourly wage. 5.2% Expected 4.8% y/y vs. 5.5% y/y in June

  • Participation rate. 65% Expected 65.33% vs. 65.3% in June

Employment change was weaker than expected on MoM basis, however unemployment rate didn't change (market's expected rise to 6.5%) while average hourly wage came in much higher YoY. Despite the mixed report, CAD strengthened, pressuring sentiments on USDCAD. Weaker employment change and unemployment rate rising almost 150 basic points to 6.5% since 2022 point to cooling Canadian labour market conditions.

Source: xStation5

Source: XTB Research, Statistics Canada, Macrobond