(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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey Police Board approves creation of municipal force at first-ever meeting

Process for hiring a police chief to ‘start immediately’: McCallum

Tree falls across road in Surrey

Crews on scene to clear the debris

Delta Nature Reserve boardwalk realignment to begin this fall

Stretch of boardwalk to be rebuilt to make room for new Highway 91/Nordel Way vehicle ramp

Cloverdale store owner giving away free face shields

Tricia Ellingsen offering more than 200 free protective shields

B.C. announces regional cancer treatment centre to be included in new Surrey hospital

Services expected to include treatment, supportive care, research, education, innovative technologies

371 British Columbians battling COVID-19, health officials confirm

Thursday (Aug. 6) saw a second straight day of nearly 50 new confirmed cases

Four activists face charges linked to 2019 Abbotsford hog-farm protest

Mischief and break-and-enter charges laid for incidents on four separate days prior to the protest

Visitors and non-residents entering closed remote B.C. First Nation’s territories

With limited resources, they say they don’t have any authority or power to enforce the closures

UBC loses appeal on Fisheries Act convictions

BC Supreme Court upholds order to pay $1.55-million fine

Masks to be mandatory on BC Transit, TransLink starting Aug. 24

Both BC Transit and TransLink made the announcement in separate press releases on Thursday

‘Tiny home’ being built for Abbotsford woman with severe allergies

Online campaign raises $59,000 for custom cargo trailer for Katie Hobson

Acclaimed B.C. actor Brent Carver passes away

Carver, one of Canada’s greatest actors with a career spanning 40 years, passed away at home in Cranbrook

B.C. would not send students back to school if there was ‘overwhelming risk’: Horgan

Plan has left many parents across the province worried about their children’s safety

Most Read