(Pixabay)

Unemployment rate sticks at 43-year low of 5.6%

For the second straight month, the jobless rate was at its lowest level since Stats Can started measuring comparable data in 1976

The unemployment rate stayed at its 43-year low of 5.6 per cent last month as the economy closed out 2018 with the addition of 9,300 net new jobs, Statistics Canada said Friday.

For the second straight month, the jobless rate was at its lowest level since Statistics Canada started measuring comparable data in January 1976.

Economists had expected the addition of 5,500 jobs in December and an unemployment rate of 5.7 per cent, according to Thomson Reuters Eikon.

READ MORE: Can the Liberals take all the credit for economic and job gains?

But even in a tightened job market the latest labour force survey shows wage growth delivered another weak reading in December of 1.49 per cent — well below inflation.

Year-over-year average hourly wage growth for permanent employees was 1.46 per cent in November — and it has decelerated steadily since its May peak of 3.9 per cent.

The December result follows a gain of 94,100 net jobs in November, the country’s largest monthly increase since March 2012.

In the jobs report Friday, the overall employment gain of 9,300 for December was deemed too low by Statistics Canada to be statistically significant.

But a closer look revealed some important changes.

Alberta, which has been hit hard by a drop in oil prices, saw a net decrease last month of 16,900 jobs or 0.7 per cent, compared with November, as an increase in part-time work was far outweighed by a loss of 36,200 full-time positions.

READ MORE: How long can it go? Economy enters 2019 with signs of weakness

For all of 2018, employment in Alberta rose 0.9 per cent as the province added 21,600 jobs. The provincial unemployment rate fell from seven per cent at the start of 2018 to 6.4 per cent at the end of the year.

Across the country, Statistics Canada said the country gained 163,300 net new jobs in 2018 for an increase of 0.9 per cent, which was a slower pace of growth compared with 2.3 per cent in 2017 and 1.2 per cent in 2016.

Employment growth in 2018 was concentrated in the services sectors, which generated 151,000 positions compared to an increase of just 12,300 in goods-producing industries.

In 2018, employment for women aged 25 to 54 grew by 125,600 positions or 2.2 per cent, compared to an increase of 60,600 jobs or one per cent for men in the same age category.

The report Friday was the first major economic data release of 2019.

The Bank of Canada has been monitoring wage growth ahead of its interest-rate decisions as it tries to determine how well indebted households can absorb higher borrowing costs.

The central bank, which will make a rate announcement next Wednesday, has raised its benchmark rate five times since the summer of 2017 in response to Canada’s strong economic performance. Governor Stephen Poloz has signalled that more increases will be needed to prevent inflation from rising too high.

(Canadian Press)

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

B.C. Provincial Health Officer Dr. Bonnie Henry. (B.C. Government photo)
Kelowna Francophone school COVID-19 outbreak climbs to 5, mixture of students and staff

Health officer says situation evolving, spoke to possible closure, changes to provincial guidelines

Neil Fassina will become the new president of Okanagan College on April 1, 2021. (Contributed)
Okanagan College recruits new president

Current Athabasca University president Neil Fassina to replace Jim Hamilton on April 1, 2021

COVID-19. (Courtesy of CDC).
Interior Health reports 12 additional COVID-19 cases

The total number of cases in the region is now at 644

Bull Mountain Adventure Park is located at 5000 Glenrosa Rd in West Kelowna. (Contributed)
West Kelowna’s Bull Mountain Adventure Park hopes to reopen in December

Owner Don Journeay is eyeing the date of Dec. 19

Brian Shiosaki helps his neighbours by shoveling the sidewalk near his home in Rutland during a large snowfall in Kelowna Tuesday. (Carli Berry/Capital News)
Special weather statement in effect for Okanagan Valley

The Okanagan could see up to 15 centimeters of snow on Friday

Actor Ryan Reynolds surprised a Shuswap family with a special birthday message to their son who was worried he’d be alone on his 9th birthday on Nov. 24. (Tiffanie Trudell/Facebook)
Ryan Reynolds text almost gives away Shuswap boy’s birthday surprise

Deadpool actor helps remind eight-year-old Canoe resident he’s not alone

RCMP detachments across B.C. are now flying Pride flags. (Submitted photo)
Man who spent 4 days injured on floor rescued by Kamloops Mountie

The man is recovering in hospital after being rescued by a police officer conducting a well-being check

Vancouver police reactivated the search for Jordan Naterer Thursday Oct. 22. Photo courtesy of VPD.
Mom of missing Manning Park hiker believes her son is waiting to come home

‘He’s going to come out of a helicopter and say ‘what took you so long?”

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A fundraiser for the Falkland Community Church is underway. (Photo submitted)
COVID-19 leaves Falkland Church in a lurch

Annual event/major fundraiser cancelled for first time in 34 years

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Environment Minister George Heyman, Premier John Horgan and Energy Minister Michelle Mungall announce that B.C. Hydro is proceeding with construction of the Site C dam, Dec. 11, 2017. (Tom Fletcher/Black Press)
Site C actions, costs won’t be known until after B.C. election, Horgan says

Peace River diverted for construction of reinforced dam base

The Vernon School District reports 95 per cent of its students have returned to classrooms amid the COVID-19 pandemic. (Jennifer Smith - Vernon Morning Star)
Fewer local, more international students help cover one Okanagan school district’s $1.2M enrolment deficit

School district projected 13 fee-paying international students; 43 enrolled

Most Read