Canada’s economy added 54,000 jobs in November, much more than experts predicted. This pushed the unemployment rate down to 6.5 per cent from 6.9 per cent in October. It was the second month in a row that unemployment fell, after reaching a recent high of 7.1 per cent in September.
Most of the new jobs were part-time. Over the past three months, Canada has gained 181,000 jobs after little growth earlier in the year. Economists had actually expected job losses in November.
Healthcare and social assistance saw the biggest gains with 46,000 new jobs. Accommodation and food services added 14,000, and natural resources added 11,000. Despite this growth, some trade-related sectors, like manufacturing and retail, lost jobs.
The strong job numbers make it likely the Bank of Canada will keep interest rates steady at 2.25 per cent on Dec. 10. Some economists say the labour market looks stronger than expected, but warn there is still “slack,” and trade challenges may slow things down next year.
Canada’s economy also grew faster than the Bank of Canada expected in the third quarter. But full-time work has struggled: full-time jobs have dropped to a three-month low, while part-time work is at a record high. Nearly one in five Canadian workers now has a part-time job.
The labour force shrank by 26,000 people in November, and the participation rate fell to 65.1 per cent. Youth unemployment also improved, dropping to 12.8 per cent from a peak of 14.7 per cent in September.
Average hourly wages rose 3.6 per cent compared to last year.
