Employment change, Unemployment Rate 11/3/2022

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

The rate of change in employment

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 shed 200.1 thousand jobs in January of 2022, after an increase of 78.6 thousand jobs upwardly adjusted in December and more than market expectations of 117,5 thousand jobs. It was the first drop in employment since May 2021 amid a spike in coronavirus cases, exacerbated by the new Omicron strain. Employment decreased both in full-time (-83 thousand; -0.5%) and in part-time jobs (-117 thousand; -3.3%). Across industries, services lost 223 thousand jobs, led by accommodation and food services (-113 thousand), culture and entertainment (-48 thousand), and retail trade (-26 thousand), while the manufacturing sector added 23 thousand jobs.

Estimate for today's data is 132K

If the data was less than expected, it will negatively affect the currency and vice versa

Unemployment rate

Determines the proportion 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
The unemployment rate in Canada rose to 6.5% in January 2022 from an upwardly revised 6% in December 2021, above market expectations of 6.2%. This was the first increase in the unemployment rate since April 2021, amid an increase in coronavirus cases due to the spread of the Omicron variable. The jobless population increased by 106,000 (8.6% to 1,340,000), while the employed population declined by 200,100 (-1% to 19,176,000) above market expectations of a decline of 117,500. Meanwhile, the labor force participation rate fell to 65% from an upwardly revised 65.4% in the previous month.

To spend more money, consumption constitutes a large part of GDP

The estimate for today's data is 6.2%

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

Tags : CAD