It’s little surprise, the Canadian job market is doing very well.
The Labour Force Survey report says that the unemployment rate in the country has dropped to 5.5 percent and 54,000 jobs were added into the economy which reduced the unemployment rate from 5.7% to 5.5% with a total of 456,000 jobs in the country which increased the employment rate by 2.4%.
More employment opportunities were seen in Ontario and Nova Scotia and steady in the rest of the provinces with the growth ratio evenly split between men and women of ages 24 and 54.
Employment in healthcare and social assistance accounted for 30,000, while the number of jobs in accommodation and food services increased to 23,000.
Big gains for Ontario and Nova Scotia with 41,000 new full-time jobs being created in Ontario. This reduced the unemployment rate down to 5.3% with 3200 new jobs being created in Nova Scotia, reducing that rate to 7.2%.
The employment ratio has increased in other provinces too. For instance, the unemployment rate in Newfoundland and Labrador reduced to 11.5 percent and that in Alberta came down to 6.6 percent.
It’s not just the employment rate that has increased, the wages have increased also. In September, the average hourly rate increased by 1.7% from $27.66 to $28.13 with economists saying the wage growth was a positive surprise and could be a signal that the average income of Canadians will potentially show progress with the number of jobs.
James Marple, a senior economist says that we are running out of adjectives to describe the performance of the Canadian job market.
The global economic situation seems a little tense with factors such as the US-China trade war on the verge, however while this is happening, the Canadian job market is sending an entirely different signal.
There are substantial gains involving self-employment with the number of self-employed individuals increasing by 62,000 in May and compared with the previous 12 months, the number rose by 3.3 percent.
The employment rate in the private sector increased by 2.8% whereas there was very little change in the employment rate in the public sector.
Here are some other insights from the report regarding the Canadian job market:
– The total number of job hours in September was 1.3% more than the previous year.
– 70,000 full-time jobs and 16,300 part-time jobs were added into the economy in September with almost 300,000 new full-time jobs being added this year.
– Most of the job gain reflected largely lower unemployment levels instead of rising the participation of the labor force with that force increasing by 6,800 in September.
– Gains were led by the health-care industry by producing 30,000 jobs.
US Economy vs. Canadian Dollar.
The Bank of Canada, despite the growing economic stability, is raising interest rates more slowly than the United States, which means the Canadian dollar will remain low. There’s a bright side to having a lower loonie with export goods becoming cheaper and tourism in the country increasing.
The USMCA trade deal placed pressure on the loonie in the recent months. The deal hasn’t approved yet but the congress fears that new democrats might seek changes in the contract.
Its expected the Loonie is likely to trade within the range of 75 and 80 seconds against the US Dollar, perhaps increasing to 78 cents as the year ends.
A Perfect Scorecard for Immigrants.
Canada has been welcoming towards immigrants. It’s usually rumoured that immigrant underemployment is a challenge in the country, however the market situation is changing. Indeed, there are still a plethora of immigrants working below their paygrade, but there has been considerable progress on this front. Immigrants are found in the labour market more than private or public jobs.
The new immigrants are integrating into the labour market quicker than their predecessors. The newcomer employment rate in 2018 was 71.3 percent. The unemployment rate among the newcomers has declined. Other than this, the wages of immigrants are also rising. Core-aged (those between the ages of 25-54) immigrants having a University degree can expect an increase in their wages by 3.5 percent.
Overall, the Canadian job market responded positively in 2019 and most economists are pleasantly surprised with the overall results.