Canada: Unemployment Rate declines to 9% in September vs. 9

Canada: Unemployment Rate declines to 9% in September vs. 9.7% expected

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  • Unemployment Rate in Canada fell more than expected in September.
  • USD/CAD dropped to its lowest level in three weeks near 1.3150.

Net Change in Employment in Canada rose by 378,000 in September, compared to analysts’ estimate of 156,600, and brought the Unemployment Rate down from 10.2% in August to 9%, Statistics Canada reported on Friday. This reading beat the market expectation of 9.7% by a wide margin.

Further details of the publication revealed that the Participation rate improved to 65% from 64.6%.

“The number of Canadians who were employed but worked less than half their usual hours for reasons likely related to COVID-19 fell by 108,000 (-7.1%) in September,” Statistics Canada noted. “Combined with the declines from May to August, this left COVID-related absences from work at 605,000 (+74.9%) above February levels.

Market reaction

The USD/CAD pair fell sharply with the initial reaction and was last seen losing 0.27% on the day at 1.3158.

Credit: FX Street

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