Canada's wage growth cools to 2% in October, undershooting forecasts

Canadian paychecks are losing steam. Average hourly earnings climbed 2% year over year in October, according to Statistics Canada's Labour Force Survey, undershooting the 2.05% economists had penciled in. It's also a cool-down from September, when wages were running at 2.30%.

The miss is small, but the direction is what matters. Wage momentum is fading, and that gives the Bank of Canada one less reason to worry about sticky inflation as it weighs its next move. The central bank's December interest rate announcement is now squarely in the spotlight.

Traders aren't waiting for December to make up their minds. Crypto Briefing reports that market participants will be hunting through Canada's inflation and employment prints for clues before the central bank sits down. Any fresh sign of a slowing economy, or of price pressures easing, could shift the policy conversation.

Then there's the human side of the equation: Bank of Canada Governor Tiff Macklem. His public remarks in the coming weeks could do as much to shape expectations as the data itself, especially with the December decision looming on the calendar.

For now, the takeaway is simple. October's wage number came in soft, the trend is downward, and the Bank of Canada heads into its final meeting of the year with a little more room to maneuver than it had a month ago.