The Canadian economic system added 37,000 jobs in January as unemployment fell barely to five.7 per cent, the primary decline since December 2022, based on a Friday report from Statistics Canada.
After three consecutive months of little change within the jobs fee, the January figures had been higher than economists anticipated however had been largely pushed by a rise in part-time work. Twelve thousand full-time jobs had been misplaced.
Common hourly wages, which have been persistently rising at a 4 to 5 per cent annual tempo as Canadians search compensation to account for inflation, rose 5.3 per cent from a 12 months in the past.
“An honest job achieve, a slide within the jobless fee and protracted 5 [per cent] wage development are hardly the stuff of an pressing name for fee cuts,” BMO chief economist Douglas Porter wrote in a be aware.
CIBC senior economist Andrew Grantham concurred, writing, “At this time’s information recommend that the Financial institution will not be in a rush to chop rates of interest, and we preserve our expectation for a primary [interest rate cut] in June.”
WATCH | CBC’s Philippe de Montigny breaks down Friday’s job numbers:
Employment rose throughout a number of sectors in January, led by wholesale and retail commerce, in addition to finance, insurance coverage, actual property, rental and leasing. In the meantime, lodging and meals providers noticed the biggest employment decline.
Canada’s labour market cooled considerably final 12 months as excessive rates of interest weighed on shopper spending and enterprise funding, pushing up the unemployment fee from 5.1 per cent in April to five.8 per cent in December.
