BMO chief economist Douglas Porter says Canada’s employment prints are due a
reality check after a run of outsized readings. August employment fell 41,700,
ending a string of strong gains, while the unemployment rate held at 6.4%.
Porter described the August report as clearly soft but not surprising, in part
reflecting a continuing decline in the labour force. He said slower job growth
and easing wage growth will reinforce the Bank of Canada’s case to keep rates
unchanged and help curb overly hawkish market expectations for further hikes.
