Canada’s Economy Adds 35K Jobs As Interest Rates Fail to Cool Labour Market

Canada’s economy added another 35,000 jobs to the labour market in March, keeping the unemployment rate unchanged— to the ire of the Bank of Canada.

Statistics Canada data showed employment levels rose 0.2% in March, marking the fourth consecutive month of upwardly trending job numbers. Much of last month’s employment gains were concentrated across the private sector, led by the transportation and warehousing and finance, insurance, real estate, rental and leasing sectors. Conversely, job numbers in the construction and natural resources industries were on the decline.

Canada’s unemployment rate remained unchanged at 5% last month, still slightly above the record-low of 4.9% observed in June and July 2022. Meanwhile, as employers continue to hire more workers despite the central bank’s aggressive mantra to contract the labour market from full employment, annual wage increases remain above 5%. Statistics Canada reported that average hourly wages rose 5.3% year-over-year to sit at $33.12, reinforcing the wage-price spiral that becomes omnipresent during times of persistent inflationary effects.

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.