Canada added more jobs than expected in August
Wage growth accelerated while unemployment remained flat.
Canada added almost 3 times as many new jobs as expected in August and wage growth accelerated. These data were released Friday by Statistics Canada (StatCan). Such figures indicate a resilient economy despite high interest rates, inflation above target and a slightly weakening Canadian dollar.
StatCan predicted that 15,000 new jobs should have been added in the last month of summer. Instead, 39,900 were created in August. Full-time jobs increased by 32,200 and part-time jobs by 7,800, respectively.
In the goods sector, employment fell by 2,500 jobs in August, mostly in manufacturing. In the services sector, however, employment increased by 43,400 jobs, mainly in professional, scientific and technical services.
Derek Holt, vice president of capital markets economics at Scotiabank, also noted an increase in the number of self-employed, up 49,500.
The unemployment rate remained at 5.5%.
The labor market remains resilient despite the challenges in the country's economy. In 2023, monthly employment growth averages 25,000 people.
The average hourly wage of permanent workers, which the Central Bank of Canada monitors particularly closely, has risen 5.2% since August 2022. In July, the year-on-year increase was 5%.
The Bank of Canada has repeatedly expressed concern that it will not be easy to manage inflation if wages continue their 4-5% annual growth rate. Markets are pricing in a 44% chance of a key rate hike before the end of the year. The next key rate decision is due on October 25.
