Canada's Job Market Roars Back to Life

Canada's job market has bounced back in a big way, outperforming its US counterpart over the past year. In July, the country added a whopping 75,100 jobs, lifting employment by 0.9% above year-ago levels.

This robust growth is a welcome change from earlier this year when trade tensions and government support measures had weighed on the economy. Compared to the US, where payrolls are only up 0.2% year-over-year, Canada's job market is looking decidedly stronger.

Canada's GDP figures also point to a rebounding economy, with the country seeing three months of sturdy job growth and solid trade data for June. The strong trend in total hours worked has been particularly encouraging, rising 0.6% in July alone and putting it on pace to rise at nearly a 4% annualized rate in Q3.

The Bank of Canada is likely to take note of these positive economic indicators as it considers its next move. With core inflation trends moving back into line with the target, markets have maintained a small chance of a rate hike by year-end.