Canada added more jobs than predicted in April; the unemployment rate remains 5.0%. Statistics Canada said Friday that the Canadian economy added 41,400 jobs in April, above estimates, while the unemployment rate remained at 5.0% for a sixth month.
Reuters analysts predicted 20,000 jobs and a 5.1% unemployment rate in April.
Statscan reported 423,900 net new jobs since September, the sixth straight monthly improvement. Since December, the unemployment rate has been 4.9%.
The 47,600 part-time jobs created last month more than offset the 6,200 full-time job losses. Statscan reported the first significant part-time employment gain since October 2022.
The Bank of Canada constantly monitors the average hourly salary for permanent employees, which grew 5.2% in April 2022.
Due to wage pressures in a tight labor market and sticky services pricing, the central bank may need to keep rates high for a while to fight excessive inflation. After eight consecutive raises, it left its main policy rate at 4.50%.
April 2022’s permanent employee hourly pay increased by 5.2%, mirroring March’s gain.
Wholesale and retail trade, transportation, and warehousing created 35,200 jobs in April, while construction generated 6,300 positions in the goods sector.
On Thursday, Bank of Canada Governor Tiff Macklem said the baseline scenario envisions the labor market weakening as GDP slows, easing wage pressures and company price-setting.
After the data, the Canadian dollar rose 0.4% to 1.3480, or 74.18 U.S. cents.
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