The Canadian labour market gained 15k positions in April, with full-time employment down -31k and part-time employment up 47k.
The unemployment rate dropped by 0.1 percentage points, to 5.2%. The participation rate was little changed at 65.3%.
By industry, Statistics Canada noted that “employment was virtually unchanged in both the goods-producing and services-producing sectors in April,” but highlighted gains in professional, scientific and technical services, as well as public administration. On the negative side, losses were noted in retail trade and construction.
On a geographic basis, the report noted employment gains in New Brunswick (+6.7k), Nova Scotia (+5.9k), Newfoundland and Labrador (+2.5k), and Alberta (+16k). Conversely, there was a decline in employment in Quebec (-27k) and effectively flat employment in Ontario.
Lastly, total hours worked declined 1.9% month-on-month and wages were up 3.3% year-on-year.
Key Implications
Given that more than 400 thousand jobs were gained over the previous two months, labour market momentum was poised to slow. This should be expected. With the unemployment rate at 5.2%, the economy is at full employment. This means it will be harder and harder to produce the kind of outsized job gains witnessed in recent months.
Going forward, we are looking for more modest job gains, which should keep the unemployment rate in the low 5% range. The drop in hours worked should bounce back, given that about 9% of workers were absent due to illness (the impact of the sixth covid wave). With the job market remaining very tight, wages should also accelerate. Overall, the key for the economy is to hold on to the job gains achieved so far. More modest employment reports are a tribute to the Canadian economy’s recent success.
