Market IntelligenceEconomy

Is Canada's labour market working?

 

Sep 06, 2024

Written by 

Ryan Berlin

SHARE THIS

Another month, another weak Canadian jobs report.

Statistics Canada has reported that, nationally, employment was virtually unchanged in August (+22,000 jobs, for a marginal gain of 0.1%), while the unemployment rate jumped to 6.6% from 6.4% in July. This marked the highest rate of unemployment in Canada in almost three years (back in September 2021 it was 7.0%, but falling).

The country’s employment rate—the proportion of the adult population that is working—fell only marginally between July and August, dipping to 60.8% from 60.9%. While a diminution of this magnitude isn’t, on its own, something to lose sleep over, the fact that August’s employment rate was the lowest (excluding pandemic-related adjustments) since October 1999 is. And yes, you read that correctly: Canada’s employment rate is currently (effectively) the lowest it’s been this millennium.

At the same time, the labour force participation (LFP) rate—the proportion of the adult population either working or actively looking for work—rose a wee bit, to 65.1% from 65.0% a month earlier, which is a positive development when considered in isolation. When considered more broadly, Canada’s LFP is at its second-lowest point since June 1998.

So overall, the news coming out of the recently-released data on Canada’s labour market isn’t great, to put it mildly. Even the 22,000 net job additions were driven by part-time work—which added 66,000 jobs—with full-time positions dropping by 44,000, month-over-month.

The evidence is clear that the Canadian economy is operating within a still-too-tight vice grip of high interest rates, and based on this latest lackluster jobs report, we should all expect more rate cuts by the Bank of Canada to close out this year.

Written by

Ryan Berlin

Subscribe to weekly market insights

Receive insights, analysis, and perspective from our rennie intelligence team on the Lower Mainland’s real estate market.

Related

blog-feature-media-clwkyfb262x9007tu72fcu93b
1.953%
Today’s release of Consumer Price Index (CPI) data from Statistics Canada brought some welcome news to (many) Canadians and the Bank of Canada alike. The annual pace of consumer price inflation declined again in August, all the way down to the Bank’s target of 2.0%—you can tell it’s below target at two decimal places.

Sep 2024

Article

3 min read

blog-feature-media-cm0ft1qm63l5a06u3w6888ww4
wages sticky, but job growth sickly
Currently-elevated earnings growth isn’t sufficient, on its own, to dull the Bank of Canada’s desire to lower borrowing costs, which we expect it to do at least twice over the course of its three remaining meetings in 2024.

Aug 2024

Article

5 min read

  • Find a Home

rennie & associates realty ltd

copyright © 2024 rennie all rights reserved

privacy policy

terms

MLS® Reciprocity

Disclaimer: This representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy.

Disclaimer: This is not an offering for sale. Any such offering can only be made by way of disclosure statement. E&OE. The developer reserves the right to make changes and modifications to the information herein without prior notice. Photos and renderings are representational only and may not be accurate.