Labour market kept roaring to end off the year with 104,000 jobs added in December

OTTAWA –

The Canadian economic system added 104,000 jobs in December because the unemployment charge fell barely to five.0 per cent, Statistics Canada stated Friday.

This marks the third decline within the unemployment charge in fourth months, edging it nearer to the record-low of 4.9 per cent reached in June and July.

“You always have to be a little bit careful about reading too much into any single Canadian employment report,” stated Douglas Porter, BMO’s chief economist.

“But this is the second time in three months that the economy has cranked out 100,000 new jobs, which is a big number historically.”

In its newest labour power survey, the federal company stated the rise in employment was pushed by a rise in full-time work.

The variety of staff within the personal sector additionally elevated final month, with job positive factors made throughout industries.

Meanwhile, employment within the public sector held regular.

Wages continued to develop at a year-over-year tempo above 5.0 per cent for the seventh consecutive month, with wages up 5.1 per cent.

However, wage progress nonetheless lags the nation’s inflation charge, which was 6.8 per cent in November.

Employment amongst youth aged 15 to 24 rose in December, totally recouping job losses skilled between July and September.

The jobs report additionally famous that the employment charge amongst ladies between the ages of 25 and 54 reached a record-high final month.

The Bank of Canada has beforehand flagged the nation’s tight labour market as a contributor to excessive inflation.

The central financial institution has raised rates of interest aggressively in hopes of bringing down the tempo of value progress and cooling the economic system..

While economists anticipate unemployment to rise in response to larger borrowing prices, the labour market has remained resilient over current months.

The Bank of Canada signalled final month a willingness to press pause on its aggressive charge hike cycle, relying on how the economic system evolves.

Though BMO nonetheless expects there to be one other charge hike on the finish of the month, Porter stated the most recent jobs report would not shut the talk.

“But I would say at the very least, this strengthens the case for at least one more rate hike in January.”

This report by The Canadian Press was first printed Jan. 5, 2023.