Unemployment rate up slightly to 5.8% in Canada in February, stable at 4.7% in Quebec

2024-03-08 15:51:57

41,000 jobs were created in Canada in February, but growth in the job market is slower than population growth.

The labor market gains are mainly made in full-time employment, while the unemployment rate increased by 0.1 percentage point to stand at 5.8%, according to the Statistics Canada report released Friday .

In Quebec, the unemployment rate remained at 4.7%.

Statistics Canada notes that population growth in Canada increased by 0.3%, which outpaced employment growth of 0.2%.

“Today’s report is certainly impressive on its face, particularly the dizzying rise in full-time employment,” wrote Douglas Porter, chief economist at the Bank of Montreal (BMO), in a report .

“However, it is clear that the results are embellished by the massive increase in population and that the labor market is gradually cooling, in fact. »

Strong population growth helps add consumers and workers to the economy, leading to continued job creation in the country. The overall picture, however, is more nuanced.

Recently, Statistics Canada has placed more emphasis on the employment rate to determine whether job creation is keeping up with population growth.

The federal agency points out that the employment rate — which represents the proportion of Canadians aged 15 and over who are employed — decreased for a fifth consecutive month in February.

This is the longest consecutive period of decline since the six-month period ended April 2009.

Wages, for their part, continue to grow rapidly. The average hourly wage increased 5% from last year, down from the rate of 5.3% in January.

Gains in catering and accommodation

The largest employment increases in Canada were in accommodation and food services, up 2.4%, and professional, scientific and technical services, up 0.9%. At the same time, declines were observed, notably of 1.1% in educational services and 0.8% in manufacturing.

Among core-aged men, the unemployment rate rose 0.2 percentage points to 5.3% in February in Canada, as more of them looked for work. Among women in the same age group, the unemployment rate fell 0.4 percentage points to 4.6%.

Quebec and Maritimes

In Quebec, employment changed little for a fifth month in a row in February. Over the 12 months ending last month, employment in Quebec rose 0.9%, while the employment rate declined.

In the Maritimes, employment increased 1.2% in February in Nova Scotia compared to the previous month and the unemployment rate decreased 1 percentage point to 6%.

The unemployment rate also fell in Prince Edward Island, from 7.4% in January to 7% last month. In New Brunswick, it increased from 6.6% to 6.9% during the same period.