The Canadian economy added just 2,300 jobs last month and the
[size=inherit]unemployment[/size][size=inherit]rate[/size]
hit a nine-month high, more signs the country’s labour market remains tepid.
The country’s [/color]
[size=inherit]jobless[/size][size=inherit]rate[/size]
rose a notch to 7.6 per cent in January, Statistics Canada said Friday. Economists had forecast 22,000 new jobs in the month, with the unemployment rate staying at 7.5 per cent.
Canada has added 129,000 jobs over the past year, however the bulk of them were in the first six months of that period. Since last summer, job creation has been sluggish and the unemployment rate has ticked higher, reflecting cautiousness of employers in an uncertain economic climate.
The report “reinforces the point that Canada’s job creation engine is cooling markedly,†said Douglas Porter, deputy chief economist at BMO Nesbitt Burns in a note. “With domestic drivers now gearing down, the job market needs the U.S. economy to gather some serious momentum.â€
The U.S. jobs market – at last – is looking up. American employers created 243,000 jobs last month – outstripping expectations and sending the unemployment rate to a near three-year low of 8.3 per cent, the Labour Department said Friday.
In Canada, part-time positions rose by 5,900 while full-time jobs fell by 3,600. Both the private sector and the public sector added to head count, while self-employment fell.
By sector, the financial, professional and technical services shed 44,800 jobs. The finance, insurance and real estate sector continued its employment declines.
Employment in the finance, insurance and real estate sector tumbled for the fifth straight month, shedding 23,000 jobs in January. Employment in this industry has fallen 4.6 per cent from last year.
Employment grew in educational services, along with information, culture and recreation.
Once again, employment rose among women aged 55 and over. This group has seen the biggest percentage gains in job growth of any demographic group over the past year.
Youth are having a tougher time – employment among those aged 15 to 24 fell for the fourth month in a row. Youth employment is 31,000 below its level of January, 2011, and the jobless rate jumped to 14.5 per cent last month from 14.1 per cent.
By province, employment in Quebec edged up, reversing a steep tumble in the fourth quarter of last year. Employment fell in Prince Edward Island and was little changed elsewhere.
Job creation will remain lacklustre in the coming months, said Derek Burleton, deputy chief economist at Toronto-Dominion Bank. He sees average gains of roughly 10,000 a month, and the jobless rate stuck at current levels.
“With budget season fast approaching, government hiring is almost certain to gear down significantly while ongoing economic uncertainty keeps hiring in the business community in check,†he said.
