Unemployment in Canada hits record low

According to the latest data from Statistics Canada, May employment rose mostly in the services sector, which added 81,000 jobs. However, these gains were undermined by the loss of 41,000 jobs, mostly in the goods sector, particularly manufacturing.

That represents a net addition of 40,000 new jobs in the country over the past month, up 0.2%.

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

Profits were mostly concentrated in the wholesale and retail trades.

Long-term unemployed, i.e. people looking for work or unemployed for 27 weeks or more, accounted for 19.7% of total unemployment in May, compared with 15.6% in February 2020, i.e. before the pandemic began.

Alberta has particularly benefited from this job gain, according to the federal agency, which also notes a drop in unemployment in Newfoundland and Labrador, Prince Edward Island, Saskatchewan, Manitoba and British Columbia.

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

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

Despite a historically low unemployment rate, Canada has been grappling with a major burst of inflation coupled with a national labor shortage for months. Of course, this has an impact on wages.

According to Statistics Canada, the average hourly wage in Canada increased by 3.9% last May compared to May 2021. In April, the increase was still 3.3%.

The average hourly wage increased by about $1.18 to $31.12 today. However, this wage increase falls far short of offsetting the 6.8% inflation recorded in Canada last April.

According to Benjamin Reitzes, Managing Director of BMO Capital Markets, the labor market was still in very good shape in May.

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

A quote from Benjamin Reitzes, Managing Director of BMO Capital Markets

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

As it raised its interest rate, the central bank said it was ready to act more forcefully if necessary and suggested it could raise rates even faster, notably by giving them a three-quarters hike. charm.

I don’t think there’s anything in this job report that pushes her to be even more aggressive, but it certainly won’t put her off.he guessed.

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