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DJ Canada Jobs Data Points to 'Modest' GDP Hit -- Market Talk

· 02/05/2021 10:33

1033 ET - Canadian employment fell by a much steeper number than traders anticipated, down 212K versus expectations for a 46K drop. The unemployment rate also shot up, to 9.4%. That said, elements of the employment data suggest the hit to GDP won't be too pronounced. Most important, hours worked rose in January, 0.9%, after a 0.4% drop in the previous month. This can be attributed to hiring in the construction, financial-services and health-care sectors, as all the job losses were in the part-time category and concentrated in sectors most affected by shutdown orders in Canada's two most populous provinces, Ontario and Quebec. The increase in hours worked were likely in high-productivity sectors, CIBC Capital Markets says, which suggests any decline in 1Q output "could be modest." (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

February 05, 2021 10:33 ET (15:33 GMT)

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