Canada’s Unemployment Rate Unexpectedly Dips to 5.1% Ahead of BOC’s Rate Decision

Employment levels across Canada remained relatively unchanged in November, but the unemployment rate did unexpectedly dip one week before the Bank of Canada is set to deliver another interest rate hike.

Canada’s economy added about 10,000 new jobs last month, substantially less than the 108,000 added in October, while the unemployment rate fell 0.1 percentage points to 5.1%. Economists polled by Reuters forecasted an unemployment rate of 5.3%. Employment levels predominantly rose across the finance, insurance, real estate, manufacturing, and information, culture, and recreation sectors, but slumped across several other industries, including wholesale and retail trade, and construction.

Meanwhile, average hourly wages rose 5.6% from November 2021, marking the sixth straight month of wage growth exceeding 5%. However, with the current annual inflation rate sitting at 6.9% as per Statistics Canada’s October data, wage growth continues to significantly lag behind the rising cost of living. The Bank of Canada is set to deliver another policy decision come next week, but given that Governor Tiff Macklem has repeatedly pointed to an overheating labour market as the culprit behind record-high inflation, it is likely that another rate hike is en route.

BMO Capital Markets economist Doug Porter said the latest labour force survey results aren’t surprising, but suggest that “the labour market remains tight and in solid shape overall,” cementing expectations for another 50 basis-point rate increase next Wednesday.

Information for this briefing was found via Statistics Canada and Reuters. 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.

Video Articles

Silver Still At 90:1, What If It Snaps Back To 15:1? | Glenn Jessome – Silver Tiger

Why This Gold Run Could Be Bigger | Roger Rosmus – Goliath Resources

Majors Don’t Want to Be Left Out of This Gold Run | Mike Bennett – Altamira Gold Corp

Recommended

Nord Precious Metals Conducts Geophysical Survey At Castle To Identify Historical Workings

Anfield Energy Releases First Assay Results From JD-7 Mine Drill Program

Related News

Amazon Plans to cut 10,000 Corporate and Tech Jobs as Global Economy Sours

Amazon (NASDAQ: AMZN) is supposedly going to terminate up to 10,000 staff across its corporate...

Monday, November 14, 2022, 02:34:50 PM

Sobeys Expands Stock Buyback Program as Food Bank Demand Soars Across Canada

With Canada’s latest grocery inflation figure for May coming in at 9.0% and its food...

Wednesday, June 28, 2023, 07:39:00 AM

ECB Raises Rates 50 Basis-Points, Pledges Further Hikes As Inflation Runs Amok

The European Central Bank on Thursday announced yet another rate hike, this time a 50...

Thursday, February 2, 2023, 03:42:00 PM

Australia’s Central Bank Breaks Hawkish Tightening Cycle as Mortgage Rates Bite Debt-Laden Consumers

Australia’s central bank has become the first among developed economies to downshift its rapid tightening...

Tuesday, October 4, 2022, 05:54:37 PM

Base-Year Effect To The Rescue: Consumer Prices Continue To Decelerate, But Food Inflation Skyrockets

Canadian consumer prices continued increasing in February, albeit at a much slower pace thanks to...

Tuesday, March 21, 2023, 09:05:11 AM