08:48 AM EDT, 09/06/2024 (MT Newswires) -- Canadian employment rebounded slightly in August following two soft months, but the job gain couldn't keep up with the pace of labor force growth and the jobless rate rose more than anticipated, said CIBC.

The 22,000 increase in employment reported in Friday's Labour Force Survey (LFS) was close to the consensus forecast of 25,000 but was driven mainly by part-time (+65,000) as full-time positions fell, noted the bank. The gain in jobs also fell well short of the rise in the labor force, which increased by 83,000 thanks to strong population growth and a one-tick rebound in the participation rate.

Because of this, the jobless rate continued to climb higher, with the 6.6% reading slightly worse than the consensus expectation (6.5%), stated CIBC.

Hourly wages for permanent employees rose 4.9% year-over-year, which was a deceleration relative to the prior month but still elevated. However, other measures of wages, including within the productivity data earlier in the week, have shown clear signs of deceleration so this shouldn't be a concern for policymakers, added the bank.

Overall, this was a slightly softer-than-expected report consistent with continued steady interest rate cuts from the Bank of Canada (BoC), according to CIBC.