Canada’s labor market continued its recovery in July as health restrictions were lifted, but the gains were less than expected.
The country’s economy added 94,000 jobs last month, Statistics Canada reported Friday in Ottawa. Economists were predicting a jobs gain of 150,000. The unemployment rate fell to 7.5 per cent from 7.8 per cent in July.
The report signals the economic rebound is intact and shows companies are finding workers as pandemic restrictions vanish. The smaller-than-expected increase, though, could cast some doubt on the pace of hiring. The gains last month were largely in full-time private-sector employment, particularly among youth and women.
The numbers show the economy has more than fully recouped losses from a third wave of the pandemic that swept through the country earlier this year. July’s increase follows a 231,000 jobs gain in June; the two months reversed the 275,000 jobs lost during lockdowns in April and May.
Of the three million jobs lost at the start of the crisis, 2.74 million have now been recovered.
The Canadian dollar weakened following the report, down 0.2 per cent to $1.2528 per U.S. dollar at 9 a.m. in Toronto trading. Still, the Canadian dollar is one of only a handful of major currencies to post gains this year, reflecting a more aggressive paring back of monetary stimulus in Canada. That’s due in part to the country’s stronger jobs market recovery.
The Canadian jobs report coincided with the release on Friday of suprisingly strong U.S. payroll numbers, where 943,000 positions were added last month.
FAVORABLE COMPOSITION
Despite the miss, the results aren’t expected to undermine expectations the Bank of Canada will continue pulling back on stimulus, with interest rate hikes expected next year by some economists. That’s because the quality of the new jobs appear to be high.
“The composition is a little bit more favorable,” Dawn Desjardins, deputy chief economist of Royal Bank of Canada, said in an interview on BNN Bloomberg Television. “It may be a headline miss in terms of the numbers, but having more full-time jobs created is definitely a good sign for the economy and certainly keeps the momentum building.”
The data give Prime Minister Justin Trudeau some fodder to tout his record of managing the COVID-19 crisis ahead of an election that’s widely expected to be called for next month.
Last September, the prime minister promised to create one million jobs — an objective the country is very close to achieving. Trudeau is expected to call an election within weeks.
There are still plenty of worries, though, including a fresh wave of lockdowns amid the global spread of the delta variant.
According to the Bank of Canada, employment will need to surpass pre-pandemic levels before a complete recovery is declared, because population has grown since the start of the crisis.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
