The U.S. October numbers were good, but not only that, the revised numbers were a lot greater than the original numbers reported. The U.S. job market snapped back in October, with nonfarm payrolls rising more than expected while the unemployment rate fell to 4.6%, the Labor Department reported Friday. Nonfarm payrolls increased by 531,000 for the month, compared with the Dow Jones estimate of 450,000. The jobless rate had been expected to edge down to 4.7%. The Labor Department’s closely watched employment report on Friday still showed, however, that worker shortages persisted even after federal government-funded unemployment benefits expired in early September and schools fully reopened. The labor force participation rate was flat.
These are signs that the U.S. economy still has room to grow and with government grants no longer in the picture, more people are going back to work, but how long it will take to reach full employment levels remains to be seen.
Canada’s numbers came in at the lower end of the range and were well below the expected 58,000 new jobs. While the numbers are still positive, it shows that future job gains may be tempered by lack of labour supply and whether people want to go back into the work force. The Canadian dollar is unchanged even as energy prices move higher, oil is up 3%, while base metals up as well, as U.S. markets continue to move higher on expectations of a gowing economy, the Canadian dollar should start to strengthen again.