Canada gains more jobs than expected in August, unemployment rate unchanged
Canada gains more jobs than expected in August, unemployment rate unchanged: The Canadian economy added 39,900 jobs in August, much more than predicted, and the unemployment rate stayed at 5.5%, according to official figures released on Friday, indicating underlying resilience despite high rates.
Reuters surveyed analysts predicted a net gain of 15,000 jobs and an increase in the unemployment rate to 5.6% from July.
According to Statistics Canada, full-time employment increased by 32,200, while part-time jobs increased by 7,800.
Even though the Bank of Canada has increased its benchmark overnight rate ten times since March 2022 to slow the economy, the labor market has remained robust. So far this year, monthly job growth has averaged 25,000.
“Always wary of putting too much weight on individual job numbers,” said Andrew Kelvin, chief Canada strategist at TD Securities.
The average hourly income for permanent workers, which the central bank regularly monitors, increased by 5.2% from August 2022, compared to a 5.0% year-on-year gain in July.
The Bank of Canada has often voiced worry that if wage growth continues at its present rate of 4% to 5% per year, it would be difficult to adequately control inflation.
The bank remained silent on Wednesday but said on Thursday that it may need to tighten monetary policy further. Its next rate announcement is scheduled for October 25.
In August, the goods sector lost a net 2,500 jobs, mostly in manufacturing, while the services sector added a net 42,400 jobs, primarily in professional, scientific, and technical services.
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