Canada December Employment stagnates but wage growth accelerates sharply
Canada’s employment data had recently been holding up slightly better that signs of stagnation in GDP implied, albeit with some increase in unemployment. Employment growth did however stagnate in December, up only 0.1k, though unemployment was unchanged at 5.8%.
While Canada’s employment data may look subdued, there was a sharp acceleration in wage growth, the yr/yr gain in hourly wages for permanent employees up to 5.7% yr/yr from 5.0%. This maintains a recent picture of Canadian inflationary pressures being more stubborn than those in the U.S.
This is despite the fact Canadian unemployment is trending higher. While December’s rate of 5.8% was unchanged, it is up from 5.0% in the first four months of 2023.
Detail in Canada’s employment report was quite weak, with full time work down by 23.5k while part tie increased by 23.6k. However weakness was led by self-employment, down by 17.6k. Private employment rose by 10.9k and the public sector by 6.8k. Goods producing employment plunged by 42.9k with manufacturing down by 18.3k and construction down by 13.9k. Services rose by 43.1k, more than fully due to 45.7k ruse in professional, scientific and technical.
