Canada's economy booms with 37,000 job additions, unemployment drops to 6%

Posted on February 16, 2024   |  

In January, Canada's job market improved as it added 37,000 new jobs, causing unemployment to slightly decrease to 5.7%, marking the first drop since December 2022.

Economists were pleased with the January figures, which were better than expected, largely due to an increase in part-time employment after three months of little change.

Average hourly wages, rising at a steady pace of 4-5% annually to counter inflation, grew by 5.3% compared to the previous year.

Several sectors saw job growth in January, particularly in wholesale and retail trade, finance, insurance, real estate, rental, and leasing. 

However, there was a notable decline in accommodation and food services employment.

Canada's labor market faced challenges last year, as high interest rates impacted consumer spending and business investment, leading to a rise in the unemployment rate from 5.1% in April to 5.8% in December.