Canadian Mortgage Professionals ~ Ferbuary 12th, 2024

Canada’s job market showed unexpected strength at the beginning of the year, with a surge in new jobs and a dip in unemployment, suggesting potential room for the Bank of Canada (BoC) to consider interest rate cuts if inflation pressures continue to wane.

According to Statistics Canada, the nation welcomed an addition of 37,000 jobs from a rise in part-time positions, marking the first reduction in the unemployment rate since December 2022. This performance also exceeded Bloomberg’s survey of economists’ expectations, who had forecasted a more modest job gain of 15,000.

However, wage increases for permanent employees slowed to 5.3% from the previous month’s 5.7%. This cooling in wage growth signals a possible easing of inflationary pressures, which might lead the central bank to lower interest rates in the future.

On a regional level, employment gains were notably strong in Ontario, Canada’s most populous province. It was concentrated in the services-producing sector, including wholesale and retail trade, finance and real estate, and educational services. Meanwhile, the participation rate slightly declined, reflecting demographic shifts in the labour force, particularly among younger and older age groups.

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