Canadian job market shows no signs of slowing despite high interest rates

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The Canadian job market is showing no signs of slowing despite high interest rates as 153,000 people joined the labour force in January.

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With the job market still tight, 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.Article contentThe Canadian economy has been on an upward trend with employment since September, adding a total of 326,000 jobs. In January, Statistics Canada said job 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.Article contentIn a client note, TD director of economics James Orlando called Friday’s report a “blowout.”

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.

 

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