(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

Lacombe Police respond to break-in at Gary Moe Chrysler

Police conducted a search of the building and located significant damage inside the business.

Lacombe Police respond to alarm at LA Carpet and Tile

Video footage was obtained, a black dodge Caravan was observed with a lone male occupant

Woofs and Laughs coming to Lacombe Memorial Centre

Comedy night supports Saving Grave Animal Society

Lacombe County fire permit season begins March 1

Lacombe County reminds people that permit requests are free and easy to submit online

Lacombe IODE chapter supports Alberta Council of Womens Shelters

Lord Lascelles Chapter looking to raise $100,000 for children exposed to domestic violence

WATCH: Night Among the Stars Celebrity Dance-off supports Lacombe BBBS

Over $12,000 raised for Dancer’s Edge Parents Association and Lacombe BBBS

UPDATED: Racist slurs lead to school hold and secure at Ponoka school

Ermineskin Cree Nation Chief Makinaw responds

Greta sticker that drew outrage in Alberta not child pornography: RCMP

X-Site Energy Services has denied having anything to do with the stickers

Courts to decide regarding Ponoka County’s north-west area structure plan

Ponoka Right To Farm Society versus Ponoka County

Canada prepared to monitor for community spread of COVID-19: Tam

The U.S. confirmed one case of the new coronavirus, or COVID-19, in California Thursday

11-year-old Sylvan Lake burn survivor using his story to inspire others

Kaden Howard was recently named the 2020 Champion Child for the Stollery in Edmonton

Conservative MP questions whether rail blockades constitute terrorism

Crown-Indigenous Relations Minister Carolyn Bennett travelled to B.C. to meet Indigenous leaders

Lawsuit over African mine can be heard in British Columbia: Supreme Court

B.C. courts dismissed Nevsun’s attempts to make Eritrea the forum for any lawsuit proceedings

MPs to examine privacy implications of facial-recognition technology used by RCMP

The MPs will look at how the technology affects the privacy, security and safety of children

Most Read