Canada and the United States recently released crucial employment data, providing insight into the economic landscape as the world continues to grapple with post-pandemic recovery. In December, Canada reported a net change in employment of +25.0K, falling short of the prior estimate of +50.5K. The country's unemployment rate edged up slightly to 6.9% from 6.8%, reflecting ongoing challenges in the labor market. Meanwhile, in the United States, December's nonfarm payrolls increased by +165K, marking a notable decrease from the earlier prediction of +227K.
In Canada, detailed employment figures revealed a complex picture. While the full-time employment change and part-time employment change were not estimated for December, previous data indicated a rise of +54.2K in full-time positions and a decline of -3.6K in part-time roles. The participation rate also remained unestimated for December, following a prior rate of 65.1%. Despite these fluctuations, hourly wages in Canada saw a year-over-year increase of 3.8%, slightly below the previous rate of 3.9%.
Across the border, the U.S. labor market exhibited similar signs of moderation. Private payrolls grew by +140K, down from the earlier forecast of +194K, while manufacturing payrolls posted a modest increase of +5K, significantly lower than the previous estimate of +22K. However, average hourly earnings in the U.S. rose by 0.3% month-over-month and 4.0% year-over-year, indicating resilient wage growth amidst broader economic uncertainties.
The global economic narrative extends beyond North America, with India's industrial production year-over-year for November surpassing expectations at 4.0%, compared to an earlier estimate of 3.5%. This growth underscores India's robust industrial sector performance amid global supply chain disruptions.
In other developments, the U.S. Supreme Court declined to intervene in former President Donald Trump's 'hush money' sentencing, a decision that maintains the legal outcomes previously determined. This news arrives as market participants monitor various geopolitical and economic events impacting investor sentiment.
On the financial markets front, the EUR/USD pair traded at approximately 1.0300 during Friday's European session, reflecting currency market dynamics influenced by economic data releases and central bank policies. Meanwhile, U.S. futures showed declines ranging from -0.2% to -0.4%, while EU indices varied between -1.0% to +0.2%, highlighting mixed investor reactions across regions.
The U.S. preliminary University of Michigan confidence index remained steady at 74.0, unchanged from its prior estimate, pointing to stable consumer sentiment in the face of ongoing economic challenges.