Canada: Labour market showing resilience early in 2019 - NBF

The Canadian employment report showed that jobs dropped 7K in March. Matthieu Arseneau, analysts at the National Bank of Canada, points out that it was the first employment pullback in seven months but affirms the numbers could have been much worse. 

Key Quotes:

“Although a monthly decline was not expected by consensus but it remains that March’s performance could have been much worse given outsized gains in the prior months. Indeed, relatively modest declines in private and full-time jobs in the month tend to confirm the impressive gains experienced in those categories over the past few months.”

“So far in 2019, private jobs are up a massive 126K and full-time employment is 92K higher. However, the situation is not entirely rosy on a regional/sectoral basis.”

“The broad picture remains one of a healthy labor market despite lackluster real GDP growth in Q42018 and Q12019. This resilience bodes well for household formation and a rebound in consumption.”