TORONTO, (Reuters) – Canada added a net 15300 jobs last Friday, mainly in part-time, according to Statistics Canada. A new record low, the jobless rate fell to 5.2%.

The net loss of 16,000 jobs in the goods-producing sector was mainly due to construction. Services saw a net increase of 31,4600 jobs, mainly in the public administration and professional, scientific, and technical services. The market reaction

Reaction of the market:

STORY:

Link:https://www150.statcan.gc.ca/n1/daily-quotidien/220506/dq220506a-eng.htm?HPA=1

COMMENTARY

JIMMY JEAN, CHIEF ECONOMIST AT DESJARDINS GROUPE

Negative surprise. You can see that the services sector feels pretty strong here with 31,000 new jobs. The weak point is in the sectors that produce goods. These narratives have not been presented to me yet. The idea is that the service sector is recovering the most right now seems consistent. While we continue to observe problems with the supply chain and slowdowns in the housing sector in goods, I’m not sure if they are related. The biggest surprise to me was wage growth… Wages are expected to increase, not decrease right now so it is a little bit of mystery as what’s happening. Still, we have an extremely low unemployment rate of 5.2% – which means that wages aren’t quite as high as they should be.

The evidence, which includes the employment turnover and the high level of job vacancies, that has been accumulated over the past few months, shows the strength of the case for the central bank’s efforts to improve the situation on the labor market. Even though this disappointment was disappointing, there is no reason to stop the central bank from moving forcefully. That means massive rate rises. They’ve stated in recent weeks that they would likely move at 50 basis-point increments.