Canadian employment growth is expected to slow to 12,000 in August, from a strong 75,000 gain in July, according to UBS Global Research ahead of Friday's Labour Force Survey (LFS) for that month.
August's unemployment rate is forecast to rise 0.1 percentage point to 6.5%, wrote UBS in a Wednesday note that was made available to media on Thursday.
Statistics Canada is slated to release the August LFS at 8:30 a.m. ET on Friday.
UBS added it will also monitor the breadth of employment gains. Despite recent improvement on a six-month basis, the employment diffusion index remained at 50 in July, suggesting that gains have yet to broaden meaningfully across industries.