Just one month after posting a very strong 60.9K jobs created, which was more than 3 times forecasts in September, the October reading for Canada's labor market swing 180 degrees, showing 54.0K jobs lost during the month. Forecasts had called for a 16.3K gain.

That averages out to 3.5K jobs per month, a very slow pace of job growth.

At the same time the unemployment rate rose to 7.3% from 7.1%.

From the Release: The number of full-time workers declinedby 72,000 in October. Despite this loss, full-timeemployment has grown 1.6% (+226,000) compared with the same month a year earlier, while part-timeemployment was little changed. Over the same period,total actual hours worked increased by 1.6%.The bulk of the decline in October occurred inmanufacturing, followed by construction. Naturalresources was the only industry to post notable gainsfor the month.

As a result the Canadian Dollar was hammered following the release, sliding sharply against the USD, EUR, GBP, AUD, CHF and JPY.

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as you can see from the above charts employment has been steadily climbing in Canada over the last two years, though it has turned somewhat sideways if we ignore the jump from September. At the same timewe see the unemployment rate falling from a .5% to 7.1%, also overall positive trends in that key indicator.

The question now is whether the very soft October release is a harbinger of things to come or is it the result of one of factors.

- Nick Nasad is the Chief Market Analyst at FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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