Canada adds 48,300 jobs, but wage growth slips

The country’s labour market continues to pump out new jobs, but Canadians are seeing wage increases fade and their work hours shrink.

Last month, the job market unexpectedly added 48,300 net new positions, thanks to surges in parttime and private-sector work, Statistics Canada said Friday.

The January employment survey showed an increase of 32,400 part-time positions and a smaller gain of 15,800 jobs in the more-desirable category of full-time work. Both numbers, however, were too low to be deemed statistically significant.

The report also found that private-sector jobs rose 32,400 between December and January, compared with an increase of 7,700 public-sector positions.

The increases helped drop the unemployment rate last month to 6.8 per cent from 6.9 per cent.

Economists described the overall job growth, which once again defied their expectations, as “very impressive” and “remarkably strong.”

“It seems as if we are all thinking that streak is going to come to an end and it just keeps on going,” said Desjardins senior economist Jimmy Jean, noting the number beat the consensus prediction for a sixth straight month.

But even with more people working, Jean said the composition of the labour data remained sub par due to some “lingering weakness.”

He pointed to the disappointing growth in hourly wages in January compared with a year earlier. Hourly earnings increased by less than 1.3 per cent, which was below inflation.

In the past, Jean said hourly wages have often grown between two and three per cent, and sometimes even a little bit more.