Tue 12 Feb 2008
Canwest News Service
Published: Friday, February 08, 2008
OTTAWA — Canada’s unemployment rate fell to a 33-year low of 5.8 per
cent in January from six per cent in the previous month as 46,000 jobs
were added to the economy, four times more than expected.
Statistics Canada said Friday that all the net total of new jobs were full-time positions in the private sector.
Most economists had expected job growth of about 10,000 in January
after a revised 2,900 decline in positions a month earlier. Statistics
Canada had originally reported 18,700 job losses in December.
Last month’s employment total brings job growth over the past
year to 337,000. “Gains in January were widespread across a number of
industries, most notably in professional, scientific and technical
services and in construction,” the federal agency said. “Overall
employment gains were tempered by decreases in information, culture and
recreation, as well as in retail and wholesale trade.”
While the job picture was strong across Canada, the agency
said Alberta, British Columbia, and Newfoundland and Labrador all saw
record employment rates in January.
Meanwhile, wage growth remained strong last month, with a
year-over-year increase in average hourly wages of 4.9 per cent for the
second consecutive month. “This was well above the most recent increase
of 2.4 per cent in consumer prices,” Statistics Canada said.
“January also marked the sixth consecutive month with a year-over-year increase in hourly wages at or above four per cent.”
The Canadian dollar jumped after the employment numbers were
released — trading just above parity with the U.S. dollar, after
closing at 98.93 cents US on Thursday.
“The (employment) rebound lines up well with other recent
indicators showing a bounce in January activity from a December lull,”
said Douglas Porter, deputy chief economist at BMO Capital Markets.
“The details of the report were also strong from head to toe.”
The Bank of Canada last month lowered its economic growth
forecast for 2008, due to a weakening U.S. economy that has hurt
exports south of the border of Canadian manufactured goods.
“So far, the Canadian labour market is holding up remarkably well,
despite the slowdown in the U.S.,” said Jacqui Douglas, economics
strategist at TD Securities.
“This reinforces the idea that the Bank of Canada will not
need to make the deep, protracted rate cuts that we’ve seen from the
(U.S.) Federal Reserve to keep the Canadian economy afloat.”
The Bank of Canada cut its key lending rate by a quarter point to four per cent on Jan. 22.
Douglas said the central bank will likely cut another half a percentage
point at its March 4 meeting, followed by a quarter-point reduction on
April 22.
Unemployment percentage rate in January by province:
Newfoundland and Labrador 12.2
Prince Edward Island 10.6
Nova Scotia 7.4
New Brunswick 8.2
Quebec 6.8
Ontario 6.3
Manitoba 3.8
Saskatchewan 3.9
Alberta 3.2
British Columbia 4.1
Unemployment percentage rate in January by city:
St. John’s, N.L. 7
Halifax 4.5
Saint John, N.B. 4.6
Montreal 6.9
Ottawa-Gatineau, Ont./Que. 4.4
Toronto 6.7
Winnipeg 4.5
Regina 4.2
Saskatoon 3.5
Calgary 2.9
Edmonton 3.6
Vancouver 4
Victoria 3.1
©Canwest News Service 2008
Related Alberta Jobs:
- Alberta Leads in Unemployment
- Canada Reports Strong February Employment Growth
- Alberta’s manufacturing sector stays upward course
- Canada high-paying and high-quality full-time jobs
- Labour Force Survey
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