Western Alberta unemployment rate increases to 5.9 per cent

  • Western Alberta unemployment rate increases to 5.9 per cent

Western Alberta unemployment rate increases to 5.9 per cent

The central bank has been holding its key rate steady at 1.75 per cent, despite cuts at many other central banks over the past few months amid the deteriorating and increasingly risky global outlook.

The national statistics office says Canada's unemployment rate nudged down to 5.5 per cent in September as the economy added 54,000 net new jobs, driven by gains in full-time work. The employment figures drove the Canadian two-year yield up 10 basis points to 1.64 per cent, leaving it above its USA counterpart by close to the biggest gap since 2017.

The numbers surpassed analysts' expectations that the country would gain 10,000 jobs in September, according to financial markets data firm Refinitiv.

Statistics Canada's monthly Labour Force Survey, released Friday, said the employment growth was led by big gains in health care and in the hotels-and-restaurants sector.

Despite the overall losses in jobs, B.C.'s unemployment rate also fell 0.2 percentage points to 4.8% as potential job-seekers left the workforce.

Compared with a year earlier, the numbers show Canada added 456,000 jobs, for an increase of 2.4 per cent.

"Canada's labour market has really been on a tear over the a year ago - job growth has been very strong", said Josh Nye, senior economist with RBC Economics.

On the plus side, not only is employment growing, but so are wages. "Wage growth was really the missing ingredient in what looked like a pretty strong labour market backdrop a year ago". Private sector jobs dropped by 21,000, with continued weakness in goods-producing industries.

"It's still an encouraging thing that unemployment is falling, and certainly it suggests we're not on the cusp of a serious downturn in the economy", Brown said.

"Between the rock-solid job market and the bounce-back in housing, it's hard to see a rate cut in October", said Douglas Porter, chief economist at Bank of Montreal.

CIBC's Mr. Pollick noted that numerous sectors with the biggest job gains have also had the lowest capital spending relative to their historical norms - including the professional, scientific and technical services segment, which alone accounts for one-quarter of the job growth in the past year.

"Canada's labor market seems to have been vaccinated against the global economic flu going around", Avery Shenfeld, chief economist at CIBC World Markets Inc., said in a note to investors.

With days before voting day, the federal Liberals pounced on the high-level numbers to push their re-election bid. The province's unemployment rate now matches Quebec's as the lowest in the country.