The Canadian labour market added 150k positions in January, with full-time employment up 121k and part-time employment up 28.9k.
The unemployment rate held steady at 5.0%. The participation rate rose to 65.7% (up 0.3 percentage points).
By industry, employment was up in trade (+59k), health care (+40k), and education (+18k). Losses were seen in transportation and warehousing (-17k).
Lastly, total hours worked were up 0.8% month-on-month and wages were up 4.5% year-on-year in January, a slight deceleration from a 4.8% y/y pace in December.
Key Implications
It was a blowout report for the Canadian labour market. The 150k jobs gain is one thing, but the fact that gains were concentrated in full-time jobs in the private sector, alongside people working more hours, makes this an even more impressive report. Although the seasonal adjustment should be called into question, the sheer size of this print points to a further boost to consumer spending and overall GDP to start the year.
Today’s report is sure to raise eyebrows at the Bank of Canada. Their conditional pause on further rate hikes is predicated on a slowing of economic growth and an easing in the labour market. The Bank won’t adjust course after one report, but it will be closely watching to see if this trend of massive job gains continues.
