Canada‘s unemployment Rate Plummets to 6.5% in November
OTTAWA – Canada’s unemployment rate fell sharply to 6.5% in November, marking a significant drop and the lowest level since April 2023. The decline represents a six-point decrease over two months,a rate of change not seen outside of the COVID-19 pandemic since the tech boom of 1999,according to Bank of Montreal chief economist Douglas Porter.
The Canadian economy added 54,000 jobs last month, the third consecutive monthly increase, though a majority where part-time positions.Growth was concentrated in the private sector and among workers aged 15 to 24, a demographic previously facing a persistently high unemployment rate which has now fallen to 12.8 percent.
Job gains were observed in health care and social assistance, accommodation and food services, and natural resources. Thes increases were partially offset by job losses in wholesale and retail trade. Alberta led provincial growth with 29,000 new jobs, followed by New Brunswick and Manitoba. Employment levels remained stable in other provinces.
Average hourly wages rose 3.6% annually, reaching $37.00 per hour – an increase of $1.27.
“This strong jobs report follows a series of better-than-expected results for the Canadian economy announced in recent weeks, including the upside surprise in third-quarter GDP and earlier solid employment gains,” Porter wrote in a note to clients.
He added that a significant slowdown in population growth, and consequently the labor force, is contributing to the easing pressure on the unemployment rate.
Coupled with recent elevated inflation, the robust economic data effectively eliminates any immediate expectation of a benchmark interest rate cut by the Bank of Canada. The Bank’s next interest rate proclamation is scheduled for December 10.
