Unemployment hits record low in Canada

Unemployment hits record low in Canada

According to the latest data from Statistics Canada, employment increased in May mainly in the services sector, where 81,000 jobs were created. However, these gains were undermined by the loss of 41,000 jobs, which occurred mainly in the goods sector, particularly manufacturing.

This translates to a net increase of 40,000 new jobs in the country last month, an increase of 0.2%.

The increase in employment was mainly due to an increase in full-time work among young women and middle-aged womenreports Statistics Canada.

It was mainly in wholesale and retail trade that profits were concentrated.

Long-term unemployment, that is, people looking for work or laid off for 27 weeks or more, accounted for 19.7% of total unemployment in May, compared to 15.6% in February 2020, that is, before the start of the pandemic.

Alberta has particularly benefited from this increase in employment, according to the federal agency, which also sees falls in unemployment in Newfoundland and Labrador, Prince Edward Island, Saskatchewan, Manitoba and British Columbia.

In Quebec, after hitting a record low last month of 3.9%, the unemployment rate rose 0.3 percentage point in May to 4.2%. As more people were active in the labor market and employment changed little, the unemployment rate increasedexplains Statistics Canada in its Labor Force Survey for May 2022.

In Ontario, the unemployment rate remained relatively stable, rising from 5.4% in April to 5.5% in May.

Despite a historically low unemployment rate, Canada has had to contend for months with a major bout of inflation coupled with a domestic labor shortage. This, of course, has an effect on wages.

According to Statistics Canada, the median hourly wage increased by 3.9% in Canada last May compared to May 2021. The increase had been 3.3% in April.

The average hourly wage increased by approximately $1.18 to reach $31.12 today. However, this increase in remuneration is far from offsetting the 6.8% inflation measured in Canada last April.

In the eyes of Benjamin Reitzes, managing director of BMO Capital Markets, the job market was still in very good shape in May.

There is really nothing in this report to deter the Bank of Canada from maintaining its aggressive tone and going ahead with more aggressive rate hikes. »

a quote from Benjamin Reitzes, CEO of BMO Capital Markets

The Bank of Canada last week raised its key interest rate by half a percentage point to 1.5% in a bid to help rein in inflation, which is at its highest level in three decades.

When it raised its key rate, the central bank explained that it was ready to act more forcefully if necessary, suggesting it could raise rates even more quickly, notably by imposing a three-quarters of a percentage point hike, Mr Reitzes recalled.

I don’t think there’s anything in this jobs report that encourages them to be even more aggressive than that, but it certainly won’t deter them.estimated.

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