Tue 12 Feb 2008
Canwest News Services and Bloomberg News
Published: Saturday, February 09, 2008
January
was a record-setting month for the Canadian labour market as the
national unemployment rate fell to a 33-year low of 5.8 per cent from
six per cent the previous month.
Canada added 46,400 jobs in
January, more than four times as many as anticipated, indicating the
full impact of a slowdown in the U.S. has yet to spread through the
country’s economy.
British Columbia’s employment rate, meanwhile, hit a record high of 63.9 per cent with an increase of 12,000 jobs.
January’s employment total brings job growth over the past year in Canada to 337,000.
“Gains
in January were widespread across a number of industries, most notably
in professional, scientific and technical services and in
construction,” Statistics Canada said in its monthly labour force
survey. “Overall employment gains were tempered by decreases in
information, culture and recreation, as well as in retail and wholesale
trade.”
Canadians are finding work even as the currency hovers
near parity with the U.S. dollar, hurting the factory exports that make
up about a third of Canada’s economic output. The Bank of Canada, which
cut its 2008 growth forecast because of weak U.S. demand for
manufactured goods, now may have less need to lower borrowing costs,
economists said.
“It’s hard to make the case for any urgency from
the Bank of Canada,” said Doug Porter, deputy chief economist with BMO
Capital Markets in Toronto. Porter changed his forecast for the next
rate decision on March 4 to a quarter-point cut from his earlier call
for the bank to ease by a half point, citing the job gains and a
separate report showing higher housing starts.
Statistics Canada
said the net total of new jobs were in 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.
While
the job picture was strong across Canada, the agency said Alberta, B.C.
and Newfoundland and Labrador all saw record employment rates in
January. Alberta continues to lead the country with an unemployment
rate of 3.2 followed by Manitoba at 3.8, Saskatchewan at 3.9 and B.C.
at 4.1.
Victoria’s unemployment rate slipped to 3.1 last month, making it the second-lowest rate among Canadian cities to Calgary’s 2.9.
While
Vincent Ferrao of Statistics Canada said the slip in Victoria is not
considered statistically significant, he pointed out it was driven by
an influx of new people entering the market.
There were 900 new faces in Victoria’s labour market last month while the number of people actually working climbed by just 500.
Ferrao
also pointed out the number of people employed in Victoria has grown
five per cent, or 9,000 people, in the last 12 months.
“It’s been driven by wholesale and retail trade, which is up 5,000, and that industry now employs 33,000 people,” he said.
Ferrao
said there were also significant increases in the accommodation and
food services sector which grew by nearly 2,000 people to employ a
total of 17,000, and the scientific and technical sector which also
grew by about 2,000 to employ 15,500 people.
Meanwhile, a
commodities boom in Western Canada continues to pressure wages. Hourly
pay rose 4.9 per cent in January from a year ago, matching the previous
month’s pace, which was the fastest since at least 1998.
– With files from Andrew A. Duffy
Related Alberta Jobs:
- Canadian jobless rate falls to 33-year low of 5.8 per cent in January
- Canada Reports Strong February Employment Growth
- Alberta’s manufacturing sector stays upward course
- Labour Force Survey
- Manufacturing’s Skilled Labour Shortage
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