Canada’s Unemployment Rate Decreases In November

The Canadian economy added 10,700 new jobs last month driving the unemployment rate to 6.8 per cent, but the latest numbers raise questions about the quality of these new jobs.

The rise in employment bucked analysts’ forecasts for a loss of 20,000 jobs after two months of growth and reinforced expectations that the Bank of Canada will keep interest rates unchanged next week and for all of 2017.

Most of the growth of jobs in November was in the service sector, including finance, real estate and leasing and agriculture. But there were fewer jobs in construction and manufacturing.

The jobless rates by province are: Newfoundland and Labrador, 14.3 per cent, (down from 14.9 per cent), Prince Edward Island, 10.8 per cent, (down from 11.7 per cent), Nova Scotia, 8.0 per cent, (up from 7.6 per cent), New Brunswick, 8.7 per cent, (down from 10 per cent), Quebec, 6.2 per cent, (down from 6.8 per cent), Ontario, 6.3 per cent, (down from 6.4 per cent), Manitoba, 6.2 per cent, (down from 6.4 per cent),Saskatchewan, 6.8 per cent, (down from 6.9 per cent), Alberta, 9.0 per cent, (up from 8.5 per cent), British Columbia, 6.1 per cent, (down from 6.2 per cent).

The youth unemployment rate across the country remained at 12.9 per cent.

Compared to a year earlier, there are 183,000 more jobs, but concern remains over the quality of employment, as most of the jobs created were part time, while the number of full-time jobs continues to erode.

The number of people working part time increased by 214,000 compared to a year earlier, while full-time work dipped by 30,000 jobs. The total number of hours worked rose 1.1 per cent and average wages were ahead by 1.5 per cent on an annual basis, generally lower than inflation.

In contrast, the goods-producing sector shed 20,600 jobs in November, led by construction, which fell by 14,400 posts. Manufacturing shed 11,900 positions. On a year-over-year basis, employment in the goods-producing sector declined by 63,800.

Based on November’s data, nearly 80% of all Canadian jobs are focused in the services sector.

“The industry mix of employment is at best neutral for Canadian wage growth … we are still far from seeing price pressures in Canada that would push the Bank of Canada to want to tighten,” said William Adams, senior international economist at PNC Financial Services Group.