July: Non-farm payroll and CAD Employment Result

People going to work

• US Jul Non-farm Payrolls +209k vs. +175ke
• US Unemployment falls to +4.3%, 16-Year Low
• US Jun Payrolls Revised to +231k; May Revised to +145k
• US Jul Labor-Force Participation Rate 62.9%

The U.S unemployment rate fell by a tenth to +4.3%, matching May as the lowest level of unemployment in 16 years. It declined despite an expansion in the labor force.

The growing labor market is slowly drawing more Americans off the sidelines and into the job search.

This suggests the growing labor market is slowly drawing more Americans off the sidelines and into the job search, and that employers are hiring many of them.

The number of Americans holding jobs or actively looking for work rose a tenth to +62.9%. The more important average hourly earnings rose +0.3% m/m or +2.5% y/y – not stellar, but heading in the Fed’s direction. The drop in unemployment and wage gains brings the Fed back in play to hike rates again in December.

Treasury’s prices are trading lower while the USD is starting off better bid.
 

Canada adds +10.9k jobs in July; unemployment rate falls to 9-year low

The Canadian economy added a net +10.9k jobs in July, in line with market expectations. For the May-to-July period, Canada has added an average +36.9k jobs per month and over 90% of the new jobs created over the past 12 months were full-time positionsOn a year-over-year basis, Canadian employment has increased +387k, or +2.1%, while their unemployment rate dropped to +6.3% in July.

The Loonie is under pressure vs. the dollar, but performing better on the crosses.