Canadian economy adds 150,000 jobs in January amid tight labour market

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Canadian economy adds 150,000 jobs in January, unemployment holds steady at 5% cdnpoli

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The country’s unemployment rate held steady at five per cent, hovering just above the record low of 4.9 per cent reached in the summer.“The fact that gains were concentrated in full-time jobs in the private sector, alongside more people working more hours, makes this an even more impressive report,” Orlando wrote..The Canadian economy has been on an upward trend with employment since September, adding a total of 326,000 jobs.

In January, Statistics Canada said gains were made across sectors in the economy. Wholesale and retail trade experienced the largest gains to employment, adding 59,000 jobs, followed by 40,000 jobs added in health care and social assistance.With the labour market running hot, wages have also been rising, though at a slower pace than inflation. In January, wages were up 4.5 per cent on a year-over-year basis, growing at a slightly slower pace than in December.

Typically, higher interest rates cause businesses and people to pull back on spending. As spending slows and sales fall, businesses may alter hiring plans.

 

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