Canada: 40-year low in unemployment as Canada’s economic growth continues

Canada has gone into its thirteenth month in a row of job creation, as the unemployment rate fell to 5.7% in December, a 40-year low, with the largest employment gains observed in Quebec and Alberta.

Statistics Canada reported that employment rates have increased across a wide assortment of industries, mainly in manufacturing, wholesale trade and resources, having benefitted from higher oil prices and the stronger but still lower Canadian Dollar against the US Dollar boosting exports.

"RFi Group data highlights that almost half of Canadians are not concerned about unemployment affecting them in the next 12 months, reflecting the strength of the economy, soothing fears over unemployment."

Following strong economic growth, provinces such as Ontario and Alberta announced plans to raise the minimum wage up to $15 per hour. The Bank of Canada, however, estimated increases in minimum wages across the country would lead to 60,000 fewer jobs by 2019. In its research paper, the Bank’s prediction on the number of jobs lost was based on a 0.3% decline in the number of hours worked, whilst forecasting an increase in the aggregate real wages by 0.7%.

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