Canada's jobless rate edges higher to 5.8 pct in January

Postado Fevereiro 11, 2019

The bumper jobs data, the second month of outsized gains in the last three, is one of the last major indicators ahead of the Bank of Canada's next rate decision on March 6.

The national unemployment rate was 5.8 per cent in January, up from the 43-year low of 5.6 per cent in December.

Unemployment in the region was 6 per cent in January, Statistics Canada said on Friday, down from 6.2 per cent the month before.

There was a surge of 66,800 net new jobs across the country, but many Canadians were still left searching for work.

The biggest boost came from the number of private-sector employee positions, which climbed by 111,500 in January for the category's biggest month-to-month increase since the agency started collecting the data point in 1976.

The employment rate was down from 62.8 per cent in December to 62.6 per cent in January.

However, the number of people working also declined as people left the workforce.

Last month, the rate was at 5.4%, nearly a full percentage point jump.

The sector covering food services and accomodations saw the biggest gains from December to January, with 600 jobs added.

"Definitely the headline job gain was very impressive", said BMO chief economist Douglas Porter.

"Overall, it's been a good day for readings on the Canadian economy". The Bank of Canada has expressed confidence that wage growth will pick up its pace. The central bank stayed on the sidelines last month after five hikes since July 2017, and most analysts expect no action.

Employment was up 0.9 per cent from January 2019 in Quebec.

More young Canadians, between the ages of 15 and 24 years old, also found work last month as youth employment gained 52,800 positions.

The rise in the unemployment rate was attributable to an expansion in the labor force with more people seeking jobs.

"Volatility returned with a notable increase in employment during the month of January", he wrote.