Economic Resilience Continues; Labour Market
Remains Extremely Tight, Despite Headwinds
Healthy job gains increase the likelihood of a soft landing. The Canadian economy added 150,000 jobs in January, the largest gain in almost a year and the fifth consecutive monthly increase. This surge in employment was 10 times greater than the general consensus estimate, partially due to an unusually large 63,000 rise in population last month, amid strong immigration. As a result, the labour force increased by an even greater 153,000 people. The unemployment rate, consequently, remained unchanged at 5.0 per cent. As the Canadian economy continues to show signs of resilience, first quarter GDP growth will likely be stronger than many anticipate. The potential for a soft landing, stemming from tighter central bank policy, remains a possibility, given Canada’s tight labour market.