Canada gains 15,300 jobs in April
OTTAWA — The Canadian economy added far fewer jobs than expected in April but the unemployment rate inched down to a new record low of 5.2 per cent, Statistics Canada data showed on Friday, setting the scene for another oversized rate hike by the central bank.
After adding more than 400,000 jobs over the previous two months, Canada added a modest 15,300 net jobs in April, far short of analyst expectations of a gain of 55,000. The increases were entirely in part-time work, as full-time employment fell.
In Nova Scotia, unemployment decreased by 2,200 (-6.7 per cent) in April, month over month, to 30,600, according to an analysis by the provincial Finance Department.
The unemployment rate decreased 0.5 percentage points to 6.0 per cent.
In Halifax, unemployment decreased 1,300 (-9.4 per cent) to 12,600, measured by a three-month moving average. The unemployment rate decreased 0.5 percentage points to 4.9 per cent.
"I would say this is back to normal. If you look at the rise in employment, it's very close to what you would expect in this economy in 'normal times'," said Doug Porter, chief economist at BMO Capital Market Economics, of the national picture.
Still, hours worked fell on the month, largely driven by absences due to illness as another wave of coronavirus infections peaked across Canada.
The average hourly wage of permanent employees also disappointed, rising just 3.4 per cent on the year, down from a gain of 3.7 per cent in March.
While the participation rate inched down, labour force participation hit a fresh high among core-age workers, and the labour market continued to tighten, Statistics Canada said.
"A number of signs have pointed to an increasingly tight labour market in recent months," according to the agency, which noted the number of part-time workers who say they would prefer full-time work has fallen to its lowest level on record.
That tightness is expected to push wage gains up in the coming months and supports the Bank of Canada going ahead with another oversized rate hike on June 1, said economists.
"The slightly weaker-thananticipated employment reading shouldn't alter market pricing for a 50 (basis point) hike since the economy is still by most measures overheating," said Royce Mendes, head of macro strategy at Desjardins Group, in a note.
The Bank of Canada made a rare 50-basis-point increase to its policy rate last month, and it made clear interest rates will need to go higher. Money markets have fully priced in a second half-percentage-point move in June.