Quotes from BMO Capital Markets:- Canadian employment sputtered to an 11,000 decline in August after the (corrected) 41,700 advance the prior month, extending the 10-month string of see-sawing gains and losses. Yet more evidence that the Canadian economy is struggling to churn out meaningful job growth. – The fact that private sector payrolls are unchanged from a year ago, and now even Alberta appears to be cooling a tad tells us all we need to know about the sluggish state of Canada’s job market. The offset is that productivity is now stepping into the void, and helping keep overall economic growth on track. – Even with the slowdown in employment, Canada is still on track to see somewhat better GDP growth this year (2.3%) than in the prior two years (1.7% and 2.0%), and productivity is what circles that square. In this environment of productivity-led growth, the Bank of Canada will continue to feel zero urgency about talking about raising rates, let alone actually raising them.
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