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Instant View: Canada September jobs gain tops estimates, jobless rate drops to 9.0%

TORONTO (Reuters) - Canada added 378,200 jobs in September, most of them full-time, and the unemployment rate fell to 9.0%, as the economy continued to reopen from coronavirus shutdowns, Statistics Canada said on Friday.

FILE PHOTO: Chairs are stacked outside a bistro as the Quebec government has ordered all restaurants, bars and casinos to close for 28 days effective midnight September 30 as coronavirus disease (COVID-19) numbers continue to rise in Montreal, Quebec, Canada September 29, 2020. REUTERS/Christinne Muschi/File Photo

LINK:here

COMMENTARY

RYAN BRECHT, A SENIOR ECONOMIST AT ACTION ECONOMICS

“This is a very strong report that suggests the recovery maintained momentum through September even as virus cases picked up and some restrictions were re-imposed.”

“Of course, employment through September was 3.7% below its pre-COVID February level, with accommodation and food and retail trade running the furthest below pre-pandemic employment levels. Hence, this report is not a threat to the BoC’s (Bank of Canada) low for a long time policy outlook.”

DOUG PORTER, CHIEF ECONOMIST AT BMO CAPITAL MARKETS

“This was a big pleasant surprise... Most were expecting job growth to decelerate, but it accelerated. It suggests the economy may have actually gathered, rather than lost, momentum, even amid an uptick in cases.”

“What we might be seeing is a better takeup of wage subsidy measure... Fundamentally, it’s possibly the economy showed a little bit of lull in August, and actually did improve as schools opened up again in September and people got a little back to normal last month.”

“We’re already seen some roll-backs in activity, in places like Quebec in particular. I would be shocked if job growth didn’t slow in the next couple of months, and the economy as well, and I suspect we’re going to see cooler growth rates ahead.”

“The Bank of Canada is a long way away from even considering shifting gears for policy. What it might mean is they are less likely to feel the need to add further stimulus.”

ANDREW KELVIN, CHIEF CANADA STRATEGIST AT TD SECURITIES

“It’s a good number. It’s very encouraging that we didn’t decelerate in September ... There is still more work to do but I think it suggests that the Canadian economy through at least September was continuing to move in the right direction. Obviously there are some headwinds coming with COVID cases starting to rise again, but it’s a very encouraging print nonetheless.”

Reporting by Fergal Smith and Nichola Saminather; Editing by Denny Thomas

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