Canada sheds 88000 jobs in January as minimum wage rises
10 February, 2018, 06:43 | Author: Franklin Nunez
Also, because the labour-force survey relies on Canadians to report their income and employment status, it is not as reliable as the Survey of Employment, Payrolls and Hours, which uses payroll-tax data and is released about six-to-eight weeks after the end of the month. The drop reflected a record loss of 137,000 part-time jobs, and a 49,000 gain in full-time work.
The province of Saskatchewan boasts the second best unemployment rate in the country according to Stats Canada.
Looking at the bigger picture Overall, the news isn't all bad, especially if you look at the bigger picture.
"This is still a solid job market, we will have to monitor how the market adjusts to the minimum wage", Brittany Baumann, a macro strategist at TD Securities, said by phone from Toronto.
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The local job market is in contrast with the national picture as Canada's unemployment rate rose to 5.9 per cent in January, up from 5.7 per cent in December 2017.
The unemployment rate in Medicine Hat has once again gone up.
There was little change in Ontario's jobless rate.
Compared to January 2017, unemployment in Nanaimo has fallen from 5.9 per cent.
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The 88,000 job decrease fell well short of economists' forecasts for a gain of 10,000 and was the biggest decline since January 2009 when the economy was dealing with the global financial crisis, Statistics Canada said on Friday. By comparison, the number of people who identified as self-employed workers - often seen as a less desirable category that includes unpaid work in a family business - increased last month by 23,900. The unemployment rate remains at 5.5 percent. It was the biggest one-month collapse in part-time work since the agency started gathering the data in 1976.
In Ontario the jobless rate fell to 5.5 per cent from 5.6 per cent in December.
BMO chief economist Douglas Porter noted it was the first setback for jobs in Canada's job market in 16 months and Ontario was especially hard hit. The Canadian dollar traded lower, dipping by 0.07 of a cent at 79.23 cents U.S. Economists are hoping the news will reduce pressure on the Bank of Canada to raise interest rates. He said it reinforces the view that the Bank of Canada will proceed "ultra-cautiously" through the rest of 2018.
The report is a long-waited correction in a tightening labor market that is more consistent with an economy that has been slowing down since the second half of previous year.
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