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Economy
Statistics Canada says economy added 41,000 jobs in April, unemployment rate 5.0%
May 5, 2023 By The Canadian Press
OTTAWA — Employment in Canada rose by 41,000 jobs last month, with all the gains made in part-time work.
Statistics Canada’s latest labour force survey released Friday says the unemployment rate held steady at 5.0 per cent for the fifth consecutive month.
That’s just above the all-time low of 4.9 per cent reached last summer.
The job gains in April were led by the wholesale and retail trade industry, while the largest losses occurred in business, building and other support services.
The federal agency says full-time employment held steady last month.
With the labour market remaining relatively tight, average hourly wages were up 5.2 per cent on a year-over-year basis, growing faster than inflation.
The annual inflation rate in March was 4.3 per cent and is expected to fall to about three per cent by mid-year.
The Bank of Canada has been warning that a tight labour market will make it more difficult to get inflation back to its target of two per cent, as higher wages could put upward pressure on prices.
The central bank paused its aggressive rate hiking cycle earlier this year and has been holding its key interest rate at 4.5 per cent.
Higher borrowing costs should force people and businesses to pull back on spending, and employers to rethink their hiring plans, but so far, the labour market has remained resilient.
