Canadian April Employment Rises 3200, Unemployment Dips To 8-Year Low
- Author: Zachary Reyes May 18, 2017,
May 18, 2017, 21:20
Nationally, Statistics Canada said the drop in youth participation helped push the jobless rate down by 0.2 percentage points even though overall employment was nearly unchanged. On Thursday, May 4, 2017, the Labor Department reports on the number of people who applied for unemployment benefits a week earlier.
"With continued solid job growth, the USA economic expansion will continue throughout 2017".
However, it's worth taking into consideration that while encouraging, these figures for unemployment rates could be skewed. Health care employment continued to trend up over the month (gaining 20,000), which is in line with the industry's average monthly job growth during the first quarter of this year but below the average gain of 32,000 per month in 2016.
This provided new evidence that March's weakness was just a one-off incident and would not keep the U.S. Federal Reserve Bank from increasing their interest rates during its upcoming meeting. Fed officials have signalled that they expect two more rate hikes this year, in addition to the one increase they made in March.
A consensus of economists had expected the unemployment rate to stay at 6.7 per cent, according to Thomson Reuters. The U.S. dollar initially gained against a basket of currencies before turning flat.
While Canada's unemployment rate dropped to levels not seen in almost a decade, Calgary's jobless rate stalled at 9.3 per cent, according to the latest jobs report.
"With slack continuing to be taken out of the labor market, the prospects are for higher wage growth in the remainder of the year", El-Erian told Benzinga.
Average hourly earnings increased 2.6 percent in March. That could also push up wages. The data are based on a monthly Current Population Survey, which calculate the veteran unemployment rate from a much smaller sample size than the overall rate.
Goods-producing employment rose by 21,000 jobs during the month, as gains in mining and logging led the way by adding 10,000. Professional and business services payrolls rose by 39,000. ADP the payroll processor said that businesses added 177,000 new jobs during April. "Brick-and-mortar retailers cut jobs in response to withering competition from online merchants".