Canada has recovered all of the roughly three million jobs lost to COVID-19.

The country’s economy added 157,100 jobs in September, returning the labor market to pre-pandemic levels, Statistics Canada said Friday in Ottawa. That compares with economists’ expectation of 60,000 new jobs, according to the median estimate in a Bloomberg survey.

The unemployment rate fell to 6.9 per cent from 7.1 per cent in August. Hours worked were up 1.1 per cent in the month but remain 1.5 per cent below their pre-pandemic level.

The Canadian dollar spiked, rising to $1.2494 per U.S. dollar as of 9:25 a.m. in Toronto. That’s the highest level since Aug. 5.

Bonds sold off, with the two-year benchmark yield at 0.651 per cent, the highest level since March 2020.

The robust numbers are a welcome sign for the nation’s economy. They suggest that companies are willing and able to hire workers as virus restrictions ease and as high vaccination rates boost optimism among consumers and businesses…read more.

David Rosenberg said its growing increasingly likely Canada will fall into a period of recession in the near-term as the headwinds against the economy continue to stack up.

“Compounding all the other issues on the supply side globally is this energy squeeze we’re seeing,” said Rosenberg, chief economist and strategist at Rosenberg Research, in an interview.

“This is a huge margin squeeze for most producers, and it’s a huge hit to the purchasing power for the 70 per cent of the economy, otherwise known as the consumer.”

Those other issues he’s referring to include global supply chain disruptions, concerns about inflation running too hot, and labour shortages, not to mention the still present threat of COVID-19 outbreaks and business restrictions.

His comments come amid a volatile week for energy prices, amid more robust than expected oil inventories in the U.S., and as Russia offered to help ease Europe’s natural gas crisis…read more.

Canada’s trade surplus with the rest of the world expanded significantly in August on larger energy exports.

The country’s merchandise trade surplus was $1.94 billion (US$1.5 billion) from a revised $736 million surplus in July, Statistics Canada reported Tuesday in Ottawa. Economists were expecting a surplus of $430 million, according to the median estimate in a Bloomberg survey.

August was the third consecutive month in which Canada’s trade balance was in surplus. Exports rose 0.8 per cent, with energy products rising the most, and imports fell 1.4 per cent.

“Canada’s trade balance and export backdrop showed resilience in August despite lingering supply chain headwinds,” Omar Abdelrahman, an economist at Toronto-Dominion Bank, said in a report to investors. “Commodity exports drove the gain, which more than offset the decline in motor vehicles and parts exports.”…read more.