Canadian employers added 90,000 jobs in April, marking the largest increase since January 2023
Canadian employers added 90,000 jobs in April, marking the largest employment gain in more than a year, as reported by The Financial Post.
Statistics Canada's latest labour force survey, released on Friday, maintained the unemployment rate at 6.1 percent for the month.
The agency indicated that the increase in April employment was primarily due to part-time positions. Over the past year, the Canadian job market has significantly cooled, influenced by the Bank of Canada's interest rate hikes, which have impacted economic growth.
The unemployment rate has risen by a full percentage point from the previous year, with population growth outpacing job creation. Unemployment has increased across all major demographic groups, notably affecting the youth the most.
This April's employment surge is the largest seen since January 2023.
Employment rose in several sectors, including professional, scientific, and technical services; accommodation and food services; health care and social assistance; and natural resources. However, employment declined in the utilities industry.
Wage growth has also decelerated, with the annual pace slowing to 4.7 percent last month, down from 5.1 percent in March. This economic data is particularly significant as the Bank of Canada prepares for its next interest rate decision.
Economists are broadly anticipating a reduction in the central bank's policy rate, expected to begin in June or July, depending heavily on the April inflation figures.
Currently, the Bank of Canada's key interest rate is at five percent, the highest level since 2001.
