The Canadian economy gained 90,000 jobs in April, much higher than the average of 20,000 jobs many economists were predicting for the latest Labor Force Survey numbers from Statistics Canada.
The federal agency pinned the increases in employment on part-time work, with more than 50,000 more of those types of positions. Statistics Canada also pointed out that private sector employment went up in April after “four months of little change.”
There were more jobs in the professional, scientific and technical services industries. As well, employment for those aged 15 to 24 went up by 40,000 in April, the first monthly increase for that demographic since December 2022.
However, the unemployment rate was unchanged from the month before, staying at 6.1 per cent. This is higher than a year ago.
“Overall, April’s labor force data were certainly better than expected,” wrote CIBC economist Andrew Grantham in an email newsletter, but Grantham pointed out that the overall trend is “loosening conditions” for the job market, pointing out both the higher unemployment rate compared to last year and a drop in wage growth, which dropped in April compared to March.
More people are also actively employed or looking for work in Canada, with April’s 0.1 per cent increase the first since June 2023.
The employment rate, or the percentage of the population that is employed, was also steady at 61.4 per cent, which StatsCan pointed out comes after six consecutive months of drops. That rate was also nearly one per cent lower in April 2024 than the year before, as population growth in Canada was higher than employment growth.
These numbers come after a loss of 2,200 jobs in March, with that month’s unemployment rate showing the largest increase since summer 2022.
The Bank of Canada will be taking this data into account as it determines whether it will change interest rates in a decision next month.
Many economists widely expect Canada’s central bank to lower its trend-setting policy rate sometime this summer, though April’s consumer price index data measuring inflation will heavily influence that decision.
