Canada’s Labour Market Moving into Balance,
Setting the Stage for Cooling Wage Pressures
Labour market conditions easing. Canada’s labour market continued to remain resilient against elevated borrowing costs as the economy added 25,000 jobs in November. This brought year-to-date employment gains to 430,000 — a 26 per cent increase when compared to the same time period last year. Most of the November gains were concentrated in goods-producing sectors. Construction employment rose by 16,000 positions following the recent strength in housing starts, while manufacturing saw an increase of 28,000 workers. Despite Canada’s economy seeing continued job gains, the unemployment rate inched up once again — increasing from 5.7 per cent in October to 5.8 per cent in November — as labour force growth outpaced job gains amid historic immigration. With the unemployment rate now trending up since April, it is becoming more likely the Central Bank is done with its historic tightening cycle.