(Pixabay)

Unemployment rate sticks at 43-year low of 5.6%

For the second straight month, the jobless rate was at its lowest level since Stats Can started measuring comparable data in 1976

The unemployment rate stayed at its 43-year low of 5.6 per cent last month as the economy closed out 2018 with the addition of 9,300 net new jobs, Statistics Canada said Friday.

For the second straight month, the jobless rate was at its lowest level since Statistics Canada started measuring comparable data in January 1976.

Economists had expected the addition of 5,500 jobs in December and an unemployment rate of 5.7 per cent, according to Thomson Reuters Eikon.

READ MORE: Can the Liberals take all the credit for economic and job gains?

But even in a tightened job market the latest labour force survey shows wage growth delivered another weak reading in December of 1.49 per cent — well below inflation.

Year-over-year average hourly wage growth for permanent employees was 1.46 per cent in November — and it has decelerated steadily since its May peak of 3.9 per cent.

The December result follows a gain of 94,100 net jobs in November, the country’s largest monthly increase since March 2012.

In the jobs report Friday, the overall employment gain of 9,300 for December was deemed too low by Statistics Canada to be statistically significant.

But a closer look revealed some important changes.

Alberta, which has been hit hard by a drop in oil prices, saw a net decrease last month of 16,900 jobs or 0.7 per cent, compared with November, as an increase in part-time work was far outweighed by a loss of 36,200 full-time positions.

READ MORE: How long can it go? Economy enters 2019 with signs of weakness

For all of 2018, employment in Alberta rose 0.9 per cent as the province added 21,600 jobs. The provincial unemployment rate fell from seven per cent at the start of 2018 to 6.4 per cent at the end of the year.

Across the country, Statistics Canada said the country gained 163,300 net new jobs in 2018 for an increase of 0.9 per cent, which was a slower pace of growth compared with 2.3 per cent in 2017 and 1.2 per cent in 2016.

Employment growth in 2018 was concentrated in the services sectors, which generated 151,000 positions compared to an increase of just 12,300 in goods-producing industries.

In 2018, employment for women aged 25 to 54 grew by 125,600 positions or 2.2 per cent, compared to an increase of 60,600 jobs or one per cent for men in the same age category.

The report Friday was the first major economic data release of 2019.

The Bank of Canada has been monitoring wage growth ahead of its interest-rate decisions as it tries to determine how well indebted households can absorb higher borrowing costs.

The central bank, which will make a rate announcement next Wednesday, has raised its benchmark rate five times since the summer of 2017 in response to Canada’s strong economic performance. Governor Stephen Poloz has signalled that more increases will be needed to prevent inflation from rising too high.

(Canadian Press)

Like us on Facebook and follow us on Twitter.

Just Posted

Plantitude giving Ladysmith vegans equal footing

New downtown restaurant believed to be downtown’s first featuring all vegan options

Volunteers take down after another successful Ladysmith Festival of Lights

Good crowd comes out for a sunny Sunday volunteer session of taking down decorations

Blood moon over Ladysmith

Gerry Beltgens shook off cold fingers this weekend to capture this image… Continue reading

Reflections of Ladysmith: The Art of Michael Dean

Work, place and people are inseparable for Vancouver Island painter

Ladysmith business recognized for supporting diversity in the workplace

Ladysmith Home Hardware, Ladysmith Pharmasave, LRCA, and Maya Norte saluted

UPDATE: B.C. legislature managers accused of excessive travel, personal expense claims

Clerk Craig James, security chief Gary Lenz call allegations ‘completely false’

B.C. man fined $10,000 after leaving moose to suffer before death

Surrey man was convicted last week on three Wildlife Act charges

‘Blue Monday’ isn’t real, but depression can be

CMHA encourages people to prioritize their mental health

Parole granted for drunk driver who killed B.C. RCMP officer

Kenneth Jacob Fenton will be able to attend alcohol abuse treatment, nearly three years after crash that killed Const. Sarah Beckett

Anti-pipeline group wants NEB to consider impact of emissions, climate change

Stand.earth filed NEB motion asking to apply same standard to the project as it did with Energy East pipeline

B.C. man charged in 2014 snake venom death of toddler

Henry Thomas was taking care of the North Vancouver girl the day before she died

B.C.’s largest public-sector union wants inquiry into money laundering, drugs

Union officials say Premier John Horgan and Attorney General David Eby have not ruled out the possibility of a public inquiry

Teen in confrontation with Native American: I didn’t provoke

Nick Sandmann of Covington Catholic High School said he was trying to defuse the situation

Vancouver Island senior dies after medical emergency and rollover crash

Incident happened Saturday in Nanaimo on Poplar Street

Most Read