Unemployment rate steady at 5.5% in August as economy adds 40K jobs: Statistics Canada
OTTAWA –
Canada’s labour market added extra jobs than anticipated final month, holding the unemployment charge regular as economists look ahead to extra indicators of a slowdown.
The economic system added 40,000 jobs, simply sufficient to maintain the unemployment charge from rising. The headline quantity was double the consensus expectation from economists.
Statistics Canada reported Friday the jobless charge held at 5.5 per cent in August, ending a three-month streak of rising unemployment.
“Canada’s job market has been following a sawtooth pattern this year, with a soft report generally followed by a snapback, and this was the month for a minor snapback,” stated BMO chief economist Douglas Porter in a shopper observe.
The respectable job report bolsters monetary markets’ expectations that charge cuts usually are not imminent and even increased rates of interest are a risk.
Nevertheless, economists are likely to focus extra on tendencies within the economic system, somewhat than one month-to-month report.
“You can never just solely focus on one of these employment numbers, because they are so volatile,” stated Andrew Grantham, CIBC’s director of economics.
“The underlying trend that we’re seeing over the last three to six months is still one that employment is growing … but we are falling short of the growth in the population.”
The federal company stated Canada’s sturdy inhabitants development means increased month-to-month job positive aspects are wanted to maintain the unemployment charge regular.
The month-to-month labour pressure surveys present Canada’s inhabitants has been rising by a median of 81,000 individuals each month this 12 months. That tempo of development requires job positive aspects of about 50,000 every month to maintain the unemployment charge regular, stated Statistics Canada.
Employment elevated in skilled, scientific and technical companies in addition to development, whereas jobs have been shed in training companies and manufacturing.
Although the job positive aspects made final month do not recommend weak spot within the labour market, particulars within the report recommend employment alternatives usually are not as plentiful at this time.
The federal company stated the job-changing charge — which represents the proportion of employees who change jobs between months — has fallen from the height reached in January 2022.
It’s additionally taking unemployed individuals extra time to discover a job in comparison with a 12 months in the past, as job vacancies fall.
The newest jobs studying comes days after the Bank of Canada opted to carry its key rate of interest at 5 per cent, prompted by current information that signaled the economic system is taking a flip: the newest gross home product report confirmed the economic system shrank within the second quarter.
The labour market has additionally eased in current months as job vacancies fall and the unemployment charge sits increased.
But the central financial institution continues to be involved about stubbornly excessive inflation and needs extra affirmation that development is stalling, together with within the labour market.
Friday’s job report does little to ease the central financial institution’s wage development considerations, as wages rose 4.9 per cent on an annual foundation, down from 5.0 per cent the earlier month.
However, economists count on the slowing financial situations to ultimately translate into smaller wage will increase for employees.
This report by The Canadian Press was first printed Sept. 8, 2023.
