Canada's January jobs growth beats expectations, unemployment rate drops to 5.7%

TORONTO (Reuters) - Canada's economy added net 37,300 jobs in January, beating expectations, while wage growth decelerated slightly in January, Statistics Canada said on Friday. The unemployment rate edged down to 5.7% from 5.8% in December, posting its first decline in 13 months.

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STORY:

Link:https://www150.statcan.gc.ca/n1/daily-quotidien/240209/dq240209a-eng.htm

COMMENTARY

ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS

"Today's data suggest that the Bank (of Canada) won't be in a rush to cut interest rates, and we maintain our expectation for a first move in June. Given indications from today's data and previously released GDP figures that the Canadian economy is in somewhat better shape than previously expected, we now forecast 25 basis point fewer cuts by the end of the year - finishing at 3.75% rather than 3.50%."

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS AT SCOTIABANK

"The job market still seems resilient, we saw wage growth cool in the latest month but overall the trend is relatively hot. In terms of GDP implications of today's numbers, there is a powerful gain in hours marked. I am tracking 2.6% annualised quarter over quarter annualised hours worked so far. That is a strong plus for expectations of GDP rebound."

DOUG PORTER, CHIEF ECONOMIST, BMO CAPITAL MARKETS

"I do believe that's the first dip we've seen in the jobless rate in more than a year. It's certainly not indicative of serious weakness in the economy."

"I think, for inflation, we did see a slight moderation in the wage measure but it's still too hot for comfort. The fact that the economy is remaining firm suggests that the Bank can remain very patient. There's simply no urgency for the Bank to cut interest rates and I think that this report drives home that point."

(Reporting by Maiya Keidan, Divya Rajagopal, Fergal Smith; Editing by Denny Thomas)