The strong run of job gains continued in the Canadian labour market as it added 27,700 jobs in May. The rate of unemployment in Canada dipped to a record low at 5.6%. This is the lowest level in 43 years after 1976.
Statistics Canada said that the addition of 27,000 jobs in May brings the gain for the last 12 months to 453, 100 jobs.
The latest report reaffirms that the job market is the chief propellant of expansion in Canada’s economy. The data demonstrates clear signs that the nation is back on the path to economic growth after brief slowdown by last year end.
The Canadian currency also jumped after the report’s publication. This has offered enhanced ammunition to the Central Bank to resist pressure for lowering borrowing costs.
The job report for the Canadian economy contrasted with weaker than projected data for payroll in the US. It has fuelled worries of a broader slowdown in the nation. It has boosted calls for US Federal Reserve interest rates to be cut.
Scotia Bank Toronto Chief Foreign-exchange Strategist Shaun Osborne said that the report for Canada had strong details with a good number. It indicates enhanced capacity for Bank of Canada to remain steady if the rates are cut by the Fed, added Osborne.
Employment in Canada is up by 2.4% from the same period in the previous year. This is the largest increase year-on-year prior to the recession in 2008-2009. The number of people unemployed in Canada is also the lowest in the past 10 years, as quoted by BNN Bloomberg.
In the last 24 months, the economy of Canada has added roughly 700,000 fresh jobs.
The 3 provinces that have remained immune comparatively from the recent weakness in the oil sector are chiefly responsible for the growth in jobs. These are Quebec, British Columbia, and Ontario. It is also applicable to industries related to services like Technology and Transportation among others.
Firms that are hiring in Canada include Accenture Plc, Canada Goose Holdings Inc, and Staples Canada. There is also a surge in hiring by tech firms.
Infor Financial Group Inc founding partner Neil Selfe said that one of the factors that are responsible for growth in Canadian jobs is the international tech firms. These are by and large based in the US – the Amazon, the Facebook, Google, etc. They are hiring workers to a greater extent in Canada than in the US.
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Canada gains 27,700 jobs in May, unemployment @ record low
Posted on June 10, 2019