Unemployment-Rate--Employment-Change 7/1/2021

This article includes an explanation of both the Employment Change B rate and the unemployment rate and expectations for today's data with a look at the chart of the US dollar against the Canadian dollar

Employment Change

Determines the level of change in the level of people employed during the past month. Job creation is an important indicator of economic recovery as consumption, which is closely related to human resource conditions, makes up a large portion of GDP. This report is considered one of the first reports published at the beginning of the month related to the human resources situation, which makes the market sensitive to big surprises from it.

The Canadian economy added 153.7 thousand net jobs in November of 2021, well above market expectations of 35,000 jobs, indicating the workforce expanded for the sixth month in a row. Job creation increased for both full-time (+80,000) and part-time (+74,000) workers, mainly concentrated in the private sector (+107,000). Among the various industries, employment rose the most in the service delivery sector (+127,000), led by health care and social assistance (+44000), retail (+34000), and professional, scientific and technical services (+28000). The commodity-producing industry also grew (+26,000), driven by industrialization (+35000). On the other hand, little change is observed in the public sector. In November, the Canadian economy had 198,000 more jobs than pre-pandemic levels in February of 2020

The estimate for today's data is 24.5K, if the data was less than expected, it will negatively affect the currency and vice versa

Unemployment rate

Determines the percentage of the total workforce that is not employed and actively seeking a job during the past quarter
If the data is higher than expected, it will have a positive impact on the currency
Workers tend to spend more money, and consumption makes up a large part of GDP

Canada's unemployment rate has fallen to a new pandemic level - a low of 6.0% in November of 2021 from 6.7% in September, below market expectations of 6.6% and within 0.3 percentage points of the unemployment rate recorded in February of 2020. It was the sixth month A succession of declines, as Ontario and Quebec lifted more capacity restrictions and spacing requirements in settings where proof of vaccination was already required. The number of unemployed shrank by 122,000 (-8.9% to 1,243,800), while the number of employed increased by 153,700 (+0.8% to 19,316,100), exceeding market expectations of an addition of 37,000. Meanwhile, the number of individuals in the labor force rose by 32,000 (0.2% to 20,560,000) resulting in a labor force participation rate of 65.3% in November, unchanged from the previous month.

Estimate for today's data is 6%.

The data will be released at 3:30 pm Beirut time

Technical view of the US dollar against the Canadian dollar

The US dollar against the Canadian dollar is declining towards 2.66% after approaching the resistance line located at 1.30000, for the negative frame, traders should monitor the bottom located at 1.26204, in case it is breached, the pair will decline to the level of 1.24341
For the positive frame, the best is to wait for a clear breach to the level of 1.30000

Tags : CAD