Canada Sees Employment Rate Fall For Fourth Consecutive Month

The Canadian labor market witnessed a modest uptick in employment figures in January, marking the first significant movement after several months of stagnation. A total of 37,000 jobs were added, translating to a 0.2% increase, primarily in part-time positions. This growth, however, was overshadowed by the population’s faster expansion rate, leading to a slight decline in the employment rate to 61.6%. Amid these dynamics, the unemployment rate saw a minor improvement, dropping to 5.7%, the first decrease since the previous year’s end.

The labor force’s participation rate also experienced a dip, settling at 65.3%, reflective of a steady number of individuals in the workforce against a rising population base. Regionally, Ontario, Newfoundland and Labrador, Manitoba, and Nova Scotia registered employment gains, with notable advancements in the services-producing sector, particularly in wholesale and retail trade, as well as finance, insurance, real estate, rental, and leasing. Conversely, the accommodation and food services sector faced setbacks.

Additionally, the report highlighted disparities in employment rates among different demographics, with notable declines among core-aged women and men, alongside a downturn in young women’s employment rates to a two-decade low. In contrast, employment for men aged 55 and over showed a modest increase.

Wage growth presented a brighter spot in the economic landscape, with average hourly wages climbing 5.3% year-over-year to $34.75, a trend that benefited women and higher-wage earners more significantly. This wage inflation mirrors broader economic patterns and shifts in labor demand across various sectors.

Canada’s unemployment rate declined in January 2024.

Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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