(Canadian Press)

Surge in job growth drives unemployment rate down to new 40-year low

The November employment surge was fuelled by the addition of 89,900 full-time positions

A blast of 94,100 new jobs last month has knocked the country’s unemployment rate down to 5.6 per cent — its lowest level since Statistics Canada started measuring comparable data more than 40 years ago.

The overall number marked the labour force survey’s largest monthly increase since March 2012 when there was a gain of 94,000 jobs, Statistics Canada said Friday.

READ MORE: B.C. budget surplus expected to keep growing

The November employment surge was fuelled by the addition of 89,900 full-time positions. For employee work, the private sector added 78,600 positions in November, while the public sector gained 8,300 jobs.

Last month’s increase pushed the jobless rate down from October’s reading of 5.8 per cent, which had been the previous low mark since comparable data first became available in 1976. The old statistical approach — prior to 1976 — registered an unemployment rate reading of 5.4 per cent in 1974.

But Friday’s report also contained disappointing details.

Year-over-year average hourly wage growth for permanent employees continued its decline in November to 1.46 per cent — to deliver its weakest reading since July 2017.

Experts have been expecting wage growth to rise thanks to the tightened labour market, but it has dropped every month since its May peak of 3.9 per cent. It now sits well below inflation.

READ MORE: Bank of Canada holds interest rate at 1.75%

The Bank of Canada keeps a close watch on wages ahead of its interest-rate decisions. On Wednesday, the central bank held its benchmark rate at 1.75 per cent, but in explaining its decision it highlighted other economic negatives such as weaker-than-expected business investment and the sharp drop in oil prices.

Royce Mendes of CIBC Economics said the Bank of Canada will take notice of the “massive reading” in the November jobs report as it mulls next month’s rate decision.

“The large gain in jobs will keep a January rate hike on the table for now, but we’ll need to see similarly positive evidence from other indicators and no major reversal in the next jobs report,” Mendes wrote in a research note to clients Friday.

Statistics Canada’s report Friday also said that, compared to 12 months earlier, employment was up 1.2 per cent following a net increase of 218,800 jobs. The addition of 227,400 full-time positions offset a small decrease in part-time work.

The November jobs report showed the goods-producing sector added 26,900 jobs following a notable gain of 14,800 construction positions. The services sector generated 67,200 jobs last month with help from the addition of 26,000 positions in professional, scientific and technical services.

By region, employment rose in six provinces and was led by gains in Quebec and Alberta.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Barriere Bottle Depot signage vandalized

Barriere RCMP say they are currently investigating two incidents of mischief against… Continue reading

TNRD director accuses Tiny House Warriors of harassment

Blue River director Stephen Quinn said the actions of the pipeline protesters need to be addressed

Convicted animal abuser to return to B.C. court May 21

Catherine Jessica Adams is facing a breach of probation charge

Drinking water advisory issued for infants in Barriere

District of Barriere advises water from the municipal system should not be used as drinking water for certain at risk populations, specifically bottle-fed infants due to levels of manganese

Special Council Meeting held May 13 in Barriere regarding current water situation

A Special Council Meeting of the District of Barriere Municipal Council was… Continue reading

UPDATE: B.C. pilot killed in Honduras plane crash

The crash happened in the Roatan Islands area, according to officials

Raptors beat Bucks 118-112 in 2OT thriller

Leonard has 36 points as Toronto cuts Milwaukee’s series lead to 2-1

‘Teams that win are tight’: B.C. Lions search for chemistry at training camp

The Lions added more than 50 new faces over the off-season, from coaching staff to key players

Rescue crews suspend search for Okanagan kayaker missing for three days

71-year-old Zygmunt Janiewicz was reported missing Friday

B.C. VIEWS: Reality of our plastic recycling routine exposed

Turns out dear old China wasn’t doing such a great job

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

B.C. residential school survivor’s indomitable human spirit centre of school play

Terrace theatre company plans to revive Nisga’a leader Larry Guno’s Bunk #7 next year

B.C. ferry stops to let black bear swim past near Nanaimo

Queen of Oak Bay brakes for wildlife in Nanaimo’s Departure Bay

Mother dead, child in critical condition after carbon monoxide poisoning at Shuswap campground

The woman was found unresponsive insider her tent and the youth was taken via air ambulance to hospital

Most Read