Canada August employment +39.9K vs +15.0K expected

• Prior was -6.4K
• Full time +32.2K vs +1.7K prior
• Part time +7.8K vs -8.1K prior
• Participation rate 65.5% vs 65.6% prior
• Average hourly wages permanent employees +5.2% y/y vs +4.7% expected (+5.0% prior)
• Total average hourly wages 4.9% y/y vs 5.0% prior
• Unemployment rate 5.5% vs 5.5% prior
• Participation rate 61.9% vs 62.0% prior
• Involuntary part time rate 18.9% vs 17.2% a year earlier

Employment grew 40K in the month but was outpaced by 103K in population growth. That’s an important dynamic as Canada goes full-tilt on immigration. It’s now seven straight months that population growth has outpaced job growth.

USD/CAD has fallen sharply on this down to 1.3620 from 1.3660. Macklem was hawkish yesterday and specifically highlighted wage growth as something the BOC is watching carefully.