Update: Canada's Unemployment Rate Holds Steady at 5.8% in December
The jobless rate in Canada remained steady at 5.8% in December, unchanged from the previous month, despite continued strong population growth and low levels of hiring, as per data from Statistics Canada. Economists had expected the unemployment rate to increase slightly to 5.9% along with modest job growth, but the pace of hiring remains slower than anticipated. Over the course of the year, trends have showed a decrease in employment and the jobless rate has risen in five of the last seven months, up from the record low of 4.9% in mid-2022. Full-time job losses were nearly balanced out by part-time positions, at 23,500 and 23,600 respectively. The number of unemployed in the nation stood at 1.2 million in December, marking a rise of 19.3% from the same time the previous year. The proportion of individuals aged 15 and above in employment fell by 0.2 percentage points to 61.6% in December. After concerns about sticky wage growth, a rise of 5.7% in average hourly wages for permanent employees might pose a challenge for the Bank of Canada. This increase is the most significant since January 2021. The central bank is looking for indicators that its past hikes in interest rates are sufficient in controlling inflation, even as it predicts subdued economic growth in the near term. The participation rate in the labor force - the proportion of working-age individuals who were either employed or unemployed - fell 0.2 points from the previous month to 65.4%. The aforementioned decline is mostly due to a fall in the youth participation rate, after a recent peak of 65.7% in June. The survey ultimately showed an uplift in the sectors of professional services, scientific services, and technical services, with parallel rises in health care and social assistance. However, jobs in retail and trade fell for a third consecutive month.