Canada Wage Gains Fall to Record Low as Jobs Run Stalls

Andrew Cummings
May 18, 2017

The April job numbers compare with a gain of 98,000 and an unemployment rate of 4.5 per cent a month earlier, according to government data released Friday. For the full year in 2016, transportation and warehousing companies added 62,000 jobs, down from a 110,000-job increase in 2015.

A closer look at the data showed a loss of 50,500 positions in the more-desirable private-sector category, while the public sector added 35,200 jobs. Employment in professional and business services, another office space driver, continued to trend up in April (gaining 39,000).

Nonfarm payrolls jumped by 211,000 jobs last month, the Labour Department said on Friday, well above the monthly average of 185,000 for this year and a jump from the gain of 79,000 in March. The unemployment rate ticked down to 4.4 percent, while wages rose by 7 cents to $26.19.

However, that helped cause a tumble during March that offset gains that became amplified due to snowstorms across the Northeast and Midwest that left growth in employment during March at approximately 50% of the earlier rates.

The April jobs report showed a labor market in the home stretch of recovery from the Great Recession.

Productivity declined at an annual rate of 0.6 percent in the January-March quarter after rising at a 1.8 percent rate in the fourth quarter, the Labor Department reported Thursday.

If the evidence continues to support that view, then we can expect the Fed to raise interest rates again at meeting next month.

Falling unemployment, rising wage growth and strong job gains in recent years have put the U.S. economy in a better spot than it has been.

The more stable monthly average of jobless claims rose by 750 to 243,000. Over the year, average hourly earnings have risen by 2.5 percent, slightly lower than the 2.7 percent growth in the previous month.

Manufacturing added 6,000 jobs in April, losing 3,000 in durable goods manufacturing and adding 9,000 in nondurable goods.

The federal agency found the unemployment rate fell to 6.5 per cent last month, its lowest level since October 2008 as fewer youth searched for work.

Other reports by iNewsToday