Employment data revision strengthens rate hike case: report

New data from Statistics Canada adds weight to the call for a rate hike this week from the Bank of Canada, says National Bank Financial Inc.

The national statistical agency released seasonal adjustments to labour market data, which showed that the Canadian job market was stronger than previously believed at the end of 2021.

According to National Bank, the revised data revealed that employment grew by more than initially reported in November and December.

During the last two months of 2021, employment was up by 234,400 — which was 26,000 more than first reported.

In particular, the job market was stronger in December, creating 78,600 jobs, up from the 54,700 that was reported.

As a result, the case for a rate hike is even stronger, the report said.

“If the BoC chooses to keep its policy rate unchanged this week, it will be because of geopolitical concerns (Ukraine), not because of a lack of strength in Canadian economic data,” it concluded.