By Luisa Chainferber
International Business Editor
Canada’s job reports in August indicated one of the largest employment gains from the last decade, unlike many other economies, reports the Wall Street Journal. The economy added new 81,100 jobs in the past month.
Although the Canadian economy is expected to slow in the second half of the year, the jobs report demonstrates the economy’s strength, especially in comparison with other global economies, such as Germany and the United States. BMO Capital Markets economist Doug Porter stated that this strong job market is due to Canada’s population growth as the country added 500,0000 immigrants in 2018.
Most of the jobs added were part-time and employed young people in the service sector, reports Global News. Despite the increase in jobs added, the unemployment rate remained at 5.7 percent, which represents a four-decade low. Meanwhile, the labor force participation rate rose to 65.8 percent. Nevertheless, there was a fall in the hourly wage growth for all employees to 3.7 percent from July’s 4.5 percent.
Labor economist for Canada Indeed, Brendon Bernard, stated that the overall picture is still one of gradual progress, according to CBC News. He reminded that the increase was not sudden, as “the Canadian job numbers perked up in August following a few tepid months. Part-time work has jumped up over the past year, but the rate of full-time job growth has also been solid.” Mr. Bernard highlighted that the new earnings data is nevertheless consistent with other recent wage indicators.
Whereas Brian DePratto, senior economist with TD Economics, expressed more optimism. Mr. DePratto noted that the Canadian labor market shows a healthy trend in the pace of hiring.
Derek Holt, Scotiabank’s head of capital markets economics, is also optimistic. Mr. Holt emphasized that that Canada’s job growth exceeded the United States in August and predicted that Canada will add more 450,000 jobs in 2019.
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