2017.11.1623:16:00UTC+00Canada Employment Growth Drops in October

The Canadian labor market lost momentum in October, according to a new report. Traders priced in the data and analysts noted that it did not change their outlook for job growth, which has been robust in 2017.

Employment fell by 5,700 in October after 43,000 jobs were added in September, payroll processor ADP said in its initial Canadian release.

The figures differed from the gain of 35,300 jobs earlier posted for October by Statistics Canada. According to analysts, the two reports will likely go in different directions on a month-to-month basis but would still show the same long-term picture.

Jointly developed with Moody's Analytics, ADP's report is derived from its payrolls data of about 40,000 firms and uses a model that includes indicators such as retail sales and housing starts to estimate the monthly payrolls change.

Canadian markets showed little reaction and were focused on a sudden rise in September manufacturing sales.

According to a separate report from Statistics Canada, manufacturing sales suddenly increased in September, lifted by sales of petroleum and coal products. Total sales grew 0.5 percent and volumes increased 0.7 percent. August was downwardly revised to a gain of 1.4 percent from an initially posted 1.6 percent rise.

The breadth of sales across sectors in September was not deep, as sales increased in 7 out of 21 industries, accounting for only 28.9 percent of the manufacturing sector.