More Rate Hikes? Canada’s Unemployment Rate Remains Historically Low

Canada’s labour market remained resilient last month, blowing past economists’ expectations and cementing the case for further intervention from the Bank of Canada.

Against forecasts calling for an increase of only 5,000 jobs, the labour market surprisingly added a whooping 104,000 positions in December, with broad-based gains across several main industries, including construction, transportation and warehousing, and accommodation and food services. Despite a surge in job openings across the healthcare and social assistance industry, employment levels fell in this category by 17,000, with declines concentrated primarily in Ontario and Quebec.

Interestingly, the employment rate for core-aged woman remains at historically high levels— in fact, over the past 12 months, a staggering 81% of women in Canada were at a job, marking the highest such annual rate since 1976. The increase was mainly focused among women with children; according to Statistics Canada, 75.2% of core-aged women with a child less than six years old were employed, an increase of 3.3% from 2019.

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

The unemployment rate dropped 0.1 percentage points to 5%, marking the third such decline in four months, sitting just above the record-low of 4.9% reported in June and July. Employment levels increased across six of the 10 provinces, including British Columbia, Ontario, Newfoundland and Labrador, as well as the prairie provinces.

Total hours worked remained relatively unchanged last month, rising 1.4% from December 2021. Average hourly wages, meanwhile, rose 5.1% year-over-year, sitting above 5% for the seventh straight month.

The latest figures likely cement the Bank of Canada’s resolve to cool the country’s labour market, opening speculation regarding another potential rate hike in January. “Today’s robust results support the view that the Bank of Canada will hike rates again later this month,” said BMO economist Douglas Porter, as quoted by Bloomberg.


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.

Video Articles

Why Is This $1.5 Billion Gold Story Worth Just $37 Million? | Fredonia Mining PEA

This Copper Stock Exploded Before Anyone Knew the Grade | Decade Resource

Silver Miners Will Crush Gold Miners | Adrian Day

Recommended

Cambria Gold Reverses Course on Mt. Margaret Spinout, Citing Strong Copper Fundamentals

Krait Critical Minerals Closes Acquisition of Nevada Hills Antimony and Its Two Washington Projects

Related News

Bank Of Canada Cuts Interest Rates For Seventh Consecutive Time To 2.75%

The Bank of Canada announced today a 25 basis point reduction in its target for...

Wednesday, March 12, 2025, 10:07:27 AM

Canadian CPI Slows to 7.6% in July… But Only Because of Lower Gasoline Prices

Hurrah! Canadians are finally getting a break from surging consumer prices, as the latest CPI...

Tuesday, August 16, 2022, 11:26:15 AM

Bank of America: Stock Rebound is Only a ‘Textbook’ Bear Market Rally, Further Declines Likely to Come

Although stocks have strongly rebounded from the lows witnessed earlier this summer as investors became...

Friday, August 26, 2022, 01:24:00 PM

Federal Reserve Acknowledges Higher Inflation, But Maintains Bond Purchases, Keeps Rates Near Zero

The Federal Reserve remained committed to its current monetary policy initiatives, despite recognizing an acceleration...

Thursday, April 29, 2021, 10:42:00 AM

Americans Grapple with Rising Loan Denials Amid High Interest Rates

Americans are facing increasing challenges in obtaining credit, as revealed in a recent New York...

Wednesday, September 6, 2023, 06:17:00 AM