Canada’s economy has added 21,000 jobs even though the workforce has shrunk by the same amount, Statistics Canada reported Friday.
The unemployment rate fell 0.2 percentage points to 5.2%, according to the data agency.
This increased as more than 20,000 people left the workforce, although the number of new jobs was modest. That means you voluntarily chose not to look for a job that month.
Until last month, the economy lost jobs for the third month in a row, totaling more than 104,000 jobs. September employment therefore means that there are still fewer workers in the economy today compared to May.
Sector-wise, the education and health care sectors were the sources of strength, while manufacturing, transportation and warehousing lost jobs.
Desjardins economist Royce Mendes singled out the education sector in particular, noting that the sector unexpectedly lost jobs in August and regained 46,000 jobs in September. “Therefore, the increase in September cannot be considered a true reacceleration of employment,” he said.
The construction sector fell slightly, losing about 3,330 jobs over the month, but overall, people in the industry say there is a strong demand for workers.
Jason Ottey, spokesperson for LiUNA Local 183, a construction union in the Greater Toronto Area, said the industry is trying to train new workers quickly. “There will be fewer jobs available, but in the long run we will reach a point of equilibrium in the labor market,” he told CBC News in an interview. We have enough work to keep the market going.”
5.2% increase in average hourly wages
Wages continue to rise, but in most cases not enough to offset the impact of inflation. Across all industries, the average hourly wage in September was $31.67. This is up 5.2% over the past year, with inflation at 7%.
However, wages have risen more in some industries than in others, with average wages for those working in professional, scientific and technical industries increasing by 9.1% over the past 12 months. Average wages in the finance, insurance and real estate sectors rose by only 2.4%.
S&P Global Market Intelligence economist Arlene Kish said central banks see the latest data on jobs and wages as a sign that the economy can withstand more interest rate hikes.
“Consumer price and wage inflation is too high,” she said. “The economy needs to cool down. Given what is happening outside Canada’s borders, it will be difficult to avoid a recession here at home.”