Insights and Market Perspectives

U.S. job growth slumps, while Canada records highest job numbers this year

Author: Portfolio Specialist Group

October 9, 2018

A recap of last week’s top economic news and what’s to come

U.S. jobs growth slumps, while Canada records highest job numbers this year

  • The U.S. Labor Department released its official hiring and unemployment figures for September last week, providing the latest snapshot of the American economy. While 134,000 jobs were added last month. Wall Street economists had expected an increase of about 168,000. Meanwhile, U.S. weekly jobless claims fell to a 49-year-low, with initial claims for state unemployment benefits dropping 8,000 to a seasonally adjusted 207,000 for the week ended Sept 29, the Labor Department said.
  • Canada’s economy recorded its best monthly job numbers this year, but the gains were all part-time and wage growth slowed. Employment increased by 63,300 in September, with more than 80,000 part-time work, Statistics Canada said. Full-time employment was down by 16,900. Economists were anticipating a 25,000 increase on the month.

$40-billion LNG investment in northern B.C., Compensation for dairy farmers following USMCA

  • A $40-billion liquefied natural gas project in northern B.C. will see a pipeline carrying natural gas from Dawson Creek to a new processing plant on the coast in Kitimat. Prime Minister Justin Trudeau heralded the investment as the largest private sector investment in Canadian history.
  • Prime Minister Justin Trudeau told dairy farmers they will be compensated for their expected losses under the new United States-Mexico-Canada (USMCA) trade agreement. Canadian dairy farmers stand to lose 3.59% of their market under the new trade deal.
  • Meanwhile, The Chinese government is denouncing provisions in the USMCA deal that would place restrictions on Canada’s ability to negotiate a free-trade deal with China, calling it a “hegemonic action” that “blatantly interferes” with another country’s sovereignty. That section of the USMCA obliges Canada, the United States and Mexico to give one another three months’ notice before starting free-trade talks with a “non-market country.”

Other economic news

  • The International Monetary Fund warned that ten years after the global financial crisis, the world remains vulnerable to another meltdown. In preview chapters of its World Economic Outlook to be released next week, the IMF said that ultra-low interest rates and growing public debt are particularly concerning, warning “large challenges loom for the global economy.”

What’s to come

Canadian housing starts, U.S. consumer price index

On Tuesday, Canadian housing starts data will be released. In the U.S., consumer price index figures will be released.

Source: BMO Economics, TD Economics, Reuters, CNBC as of October 5, 2018

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