PREVIOUS TRADING DAY EVENTS 03 Nov 2023

Job data for Canada were reported worse. Fewer jobs than expected were recorded in October and the unemployment rate rose to a 21month high of 5.7, signalling that the central bank may not need to raise rates again.

The employment change was just 17,5K jobs in October. The average hourly wage for permanent employees rose 5.0 from a year earlier, down from 5.3 in September.

In line with the more pronounced cooling in hiring, the annual pace of wage growth for permanent employees slowed three ticks to 5.0, said Royce Mendes, head of macro strategy at Desjardins. While thats still inconsistent with the Bank of Canadas 2 inflation target, monetary policymakers will take the deceleration as a sign that their medicine is working, he said. The Bank of Canada BoC held rates at a 22yearhigh of 5.0 last month after having raised them 10 times between March of last year and July to try to bring inflation back to its 2 target. Annual inflation was 3.8 in September.

The softerthananticipated jobs report follows data out earlier this week indicating that the economy likely slipped into a shallow recession in the third quarter.

Source

httpswww.reuters.commarketscanadaaddsfewerjobsthanexpectedoctoberjoblessraterises20231103

According to the Job data for the U.S. the employment change slowed in October and the increase in annual wages was the smallest in nearly 212 years, pointing to an easing in labour market conditions. The…