|The labor market of Canada posted a strong advance in September by adding 53,700 net jobs / Photo by Cathy Yeulet via 123f|
The labor market of Canada posted a strong advance in September by adding 53,700 net jobs, mostly from the services sector. This is according to Reuters, citing the government agency tasked to produce statistics to understand the country Statistics Canada.
Canada’s economy on solid footing
The latest employment report by the government agency shows that the economy of Canada is indeed on solid footing compared with other economies in the world. The market expectations were only for 10,000 job gain but the country has exceeded such an expectation, according to an economist working at the Royal Bank of Canada.
In September, the country’s unemployment rate also fell to 5.5 percent after it reached a 40-year low of 5.4 percent last May. Then, the unemployment rate increased to 5.5 percent in June and 5.7 percent both in July and August.
Based on the employment data in September, Canada has created 4,300 jobs in the goods-producing and construction sectors, and 49,400 in the services sector. The data emphasize the services sector, particularly in social assistance, healthcare, food services, and accommodation. Moreover, full-time employment in Canada increased to 70,000 and part-time employment declined by 16,300.
The private sector organizations and companies, on the other hand, lost 21,000 workers. The independent contractors and freelancers, who are a part of the self-employed, advanced also by 42,100 in the same month.
|Full-time employment in Canada increased to 70,000 / Photo by Dmitrii Shironosov via 123rf|
The employment figures are also believed to be one of the major economic releases before the national election in the country. Reuters added that the data may be welcomed by the country’s Prime Minister Justin Trudeau. He even tweeted about the thousands of new jobs that were created in the country in September alone. He added in his tweet that such a thing happens when people invest in middle-class people. The prime minister also encouraged the people to work together to keep their economy growing and create more jobs.
Average hourly wages
Meanwhile, there was a 4.3 percent increase in the average hourly wages in September. From $27.66, the average hourly rate rose to $28.13. The report also mentioned that most of the employment gains were concentrated in Nova Scotia and Ontario. In Nova Scotia, 3,200 new jobs were created. In Ontario, 41,000 new jobs were created last month and most of them were full-time work.
Strong Canadian dollar
The Canadian dollar has likewise strengthened to C$1.3225 to one USD or one Canadian dollar to 75.61 cents US. Since October last year, the central bank of Canada has also not moved its interest rates despite some of the bank’s counterparts having already eased. That included the US Federal Reserve.
The Bank of Canada stated last month that the economy showed a degree of resilience. “The job market remains quite strong,” BMO Financial Group’s Chief Economist Douglas Porter opined. Porter has more than 25 years of experience analyzing financial markets and global economies. He added that he would characterize Canada’s economy as “relatively positive” in the overall aspect. Even the job breakdown was also good.
|The Canadian dollar has likewise strengthened to C$1.3225 to one USD / Photo by Mr.rapisan Swangphon via 123rf|
Meanwhile, Royal Bank of Canada’s Senior Economist Josh Nye emphasized that economic resilience has kept the Bank of Canada in a neutral tone and the global central banks are also lowering their rates and giving additional accommodation.
Why low unemployment is important
Having a low unemployment rate means there are more jobs and fewer available workers for every job opening. It is beneficial for the job hunters as they have more opportunities in the labor force. Low unemployment also forces employers to increase pay sharply to retain and attract new workers. But it may also mean slower economic growth. This is because businesses cannot find enough workers for the job and they cannot satisfy the demand of their customers or they cannot deliver as many products and offer as many services as needed.
Unemployment rate: forecast
The Organisation for Economic Co-operation and Development (OECD), an economic organization created to stimulate world trade and economic progress, has shared the unemployment rate forecast data or their projected value of the number of unemployed people as a percentage of the labor force. The unemployment rates of Canada were detailed as follows:
Included in the unemployed people are those who reported having no work, are available for work, and have taken active steps in finding work in the last four weeks. The OECD has also highlighted the unemployment rate data of the United States:
As for the unemployment rate of Canada by education level, the OECD says it reached 8.9 percent in 2018 based on the percent of unemployed 25- to 64-year-olds among the 25- to 64-year-olds in Canada’s labor force.
The country with the highest unemployment rates by education level in 2018 was the Slovak Republic (27.4), followed by South Africa (25.4) and Greece (22.0). The countries with the lowest unemployment rates by education level in 2018 were Saudi Arabia (0.3), Indonesia (1.6), Mexico (2.1), Iceland (2.8), Korea (3.2), New Zealand (4.6), and Israel (4.8).