Labour market booming as Canada adds over 50k jobs in May
- Author: Zachary Reyes Jun 10, 2017,
Jun 10, 2017, 1:17
That city's jobless rate fell to 3.9 per cent, tying it with Victoria for the lowest figure in Canada.
Adjusted to the way calculations are made in the U.S., Canada's unemployment rate was 5.6 per cent in May, compared with 4.3 per cent in the U.S.
The goods-producing sectors of the economy added 23,300 jobs. Bank of Canada Governor Stephen Poloz said on Thursday he was comforted with recent signs of strength. They only expected 15,000 jobs to be added.
The fresh figures added to several robust labour market gains since the middle of previous year and economists pointed to the performance as more evidence the economy's early-2017 momentum isn't about to slow down.
"We think the Canadian economy is in a very good place right now". The Bank of Canada has pointed to recent muted pay growth as a sign of slack in the economy.
Bill Adams, senior global economist for PNC Financial Services Group, called the details "glorious".
By industry, the services sectors gained 31,300 jobs last month, manufacturing 25,300 jobs, the professional, scientific and technical services category gained 25,900 jobs, and transportation and warehousing added 17,100 jobs.
Despite the large number of jobs, the national unemployment actually climbed to 6.6%, which according to Statistics Canada is due to more people entering the job market in search of work. The unemployment rate for youth slipped 0.3 percentage points to 12 per cent last month as more young people participated in the job market.
The numbers easily eclipsed expectations leading up to the survey's release.
Canada's unemployment rate increased to 6.6 per cent in May, in line with economist expectations, from 6.5 per cent in April.
The employment gain - the third biggest one-month increase in the past five years - was driven by the addition of 77,000 new full-time jobs, which offset falling part-time employment.
Quebec's unemployment rate dropped 0.6 percentage points to six per cent - its lowest level since Statistics Canada started collecting the data in 1976.
However, Canadian wages continue to be soft despite the fact that the annual growth in permanent employee wages rose to 1.0 per cent from the all-time low 0.5 per cent increase in April, economists warned.
OTTAWA, June 9 Canada's job growth accelerated in May at its fastest pace in eight months, and annual wage growth improved, prompting economists to suggest the Bank of Canada could raise interest rates sooner than anticipated.