Canada's unemployment rate has risen again
A new labor market study takes immigrants into account.
Statistics Canada has published another regular report on the labor market situation. Over the past month, the unemployment rate rose slightly again: from 5.7% in October to 5.8% in November. That said, the economy still beat all experts' expectations, adding 25,000 jobs. But it still hasn't kept up with the rate of population growth.
The main category of the population, due to which unemployment is now growing, is young people from 15 to 24 years old. In addition, the rate of layoffs continues to rise. Compared to last year, the unemployed in November were more likely to quit their previous job, reflecting more challenging economic conditions in general and labor market conditions in particular in 2023.
Canada's unemployment rate is currently hovering near pre-pandemic levels but is expected to continue to rise as higher borrowing rates put pressure on businesses.
"The increase hasn't been that large to date, but it is the kind of increase that typically you only see at the start of a labour market downturn," commented Nathan Janzen, assistant chief economist at the Royal Bank of Canada.
Immigrants in the labor market
In recent years, record numbers of immigrants have come to Canada to find work, to reunite with their families, or as refugees. In 2021, the immigrant share reached an all-time high of 23%. From July 1, 2022 to July 1, 2023, immigrants and non-permanent residents accounted for almost 98% of population growth.
While immigrants are playing an increasing role in Canada's labor market, many immigrants still face barriers to labour market integration, including those with post-secondary education or work experience acquired abroad.
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