Canada Job Growth Remains Flat In December

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Canada Job Growth Remains Flat In December

Canada'S Job Growth Remains Flat In December

In December 2023, 100 jobs were added to the Canadian economy. Additionally, all these jobs were part-time only, suggesting no change occurred in Canada's labour market.

The unemployment rate in December was 5.8%, which is high given the size of the Canadian economy.

Canada'S Services Sector Records Positive Job Growth

If we look at the jobs in the manufacturing sector, the jobs decreased by 42900. Conversely, 43100 jobs were added in the Canadian services sector. In particular, most of these jobs were made available in the technical, scientific, & and professional services.

Overall, the data from the Canadian side was similar to what was seen in the US. It is safe to say that both economies are experiencing strong wage growth.

Given these numbers, it makes sense for the Bank of Canada to stay sharp about inflation risks. Given the weak data from the ISM, the inflation risk towards the upside has increased tremendously. Against this backdrop, some experts believe that the market perceives March/April rate cuts as too aggressive.

In short, December's report was a non-event for the Canadian economy as it showed no change. The population in Canada jumped by 74000, but the employment rate remains the same. This is a sign that the employment rate has decreased as there are still the same number of jobs but more people.

In addition, the unemployment rate in Canada showed a little pause. That's the first instance in almost six months, allowing some breathing space for the job market.

Another expert said that the report was mixed, which means the Bank of Canada will likely wait till June 2024 to make the first rate cut.

The bottom line is that the job market in Canada shows signs of a cooldown in December 2023. This confirms that the Canadian labour market & and the overall economy are struggling.

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