(December 3 – 13:45 ET) –
A significant rise in full-time
jobs drove Canada’s unemployment
rate to its lowest level since
August of 1981, according to
Wojciech Szadurski, Senior
Economist, Bank of Montreal.
Canada’s employment surged by
60,000 jobs in November on the
heels of an 80,000 gain in
October.
Combined with a small 21,000
rise in the labour force in
November, this sent the jobless
rate down to 6.9 per cent from 7.2
per cent in October. In a
commentary released today by Bank
of Montreal’s Economics Department,
Mr. Szardurski noted that a spurt
of 89,000 full-time jobs accounted
for all the employment created in
November, partially offset by a
29,000 decline in part-time
workers.
Dissecting job gains by age,
industry and provinces, hiring was
fairly widespread in the month.
Youth employment rose by 16,000
jobs, with the remainder of new
jobs going to adults. The goods-
producing sector increased its work
rolls by 8,000, as sizable gains
in construction and natural
resource industries overwhelmed a
decline in manufacturing and
utilities. The service-producing
sector posted a 52,000 rise in
November, led by transportation
and warehousing, and professional,
scientific and technical services.
All provinces recorded higher
employment, except Ontario where
jobs fell 7,000. As well, the
unemployment rate shifted down
or stayed unchanged in all regions,
except for British Columbia. It
rose 0.6 percentage points to 8.0
per cent in the province as a 1.2
per cent spurt in the labour force
more than offset a 0.7 per cent
gain in employment.
Going forward, Bank of
Montreal’s economists continue to
anticipate the participation rate
to move higher as the stronger
demand for labour increasingly
draws in new job seekers. This
could cause the unemployment rate
to partly retrace the recent
declines. “However, if the
participation rate continues to
languish, the pool of available
workers would be depleted faster
than we anticipate,” said Mr.
Szadurski. “Such a development
would raise the risk of a more
aggressive tightening by the Bank
of Canada.”
-IE Staff
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