HIGHLIGHTS OF THE WEEK – Nov. 12
• Concerns about the pace of U.S. job growth were swept away this week by a resounding payroll report that showed the economy generated 271K jobs in October. The good news didn’t end there. The unemployment rate moved down to 5.0% and average weekly earnings growth accelerated to 2.5%.
• The breadth of evidence in the data this week suggests that the American economy is growing above trend. The strength in job growth is exactly the confirmation the Federal Reserve is looking for that the economy is resilient to global headwinds. This cements the case for a gradual rise in the federal funds rate beginning in December of this year.
• Canada’s international trade report this week underscored the view that the economy is recovering from the mild recession over the first half of this year. Real exports jumped 11.5% (annualized) in the third quarter of the year, which likely provided a strong lift to real GDP growth during that period.
• The labour market added 44,000 jobs in October and the unemployment rate edged down to 7.0%. While temporary hiring related to the federal elections helped buoy job gains in October, the private sector also created a hearty 41,000 new jobs in the month, outstripping public sector job gains (+30,000). Self-employment fell by 27,000. Job gains were largely concentrated in non-oil producing economies. Saskatchewan and Alberta have shed roughly 54,000 private sector jobs, combined, over 2015 so far.
For further information, please contact:
John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446