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Surge in Employment Likely to Translate into a
Further Interest Rate Hike
Labour market remains tight, despite economic headwinds. The Canadian economy added 104,000 jobs in December, beating the general consensus of 8,000. Total employment gains for 2022, as a result, reached 394,000. Last month’s growth was a byproduct of broad-based hiring across multiple sectors, which were able to generate a 90,000-person increase in the labour force, mostly among young people. The unemployment rate, consequently, edged down 10 basis points to 5.0 per cent, just above the all-time low of 4.9 per cent witnessed in June. This decline in unemployment — even amid an expanding labour force — indicates strength in the Canadian economy, despite rising interest rates and a potential recession.