(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.

Just Posted

Shuswap rock climbing gym opening Spring Break

Salmon Arm’s Gym of Rock to accommodate all ages and abilities

Penticton woman captures footage of bobcat feasting on bird in backyard

‘Kim Ken Oszinski’ posted photos and videos of the bobcat from just a few feet away

Okanagan Shuswap weather: Glimpses of sun expected on another wintry day

The sun will be peeking out from behind the clouds for the next few days

Larch Hills junior racers top Teck BC Midget Championships

Multiple top-five finishes contribute to aggregate team trophy

Pool plans disappoint Shuswap swim clubs

Mayor assures options for city rec centre only preliminary

Okanagan man fined $600 for twenty-third illegal driving conviction

Judge says another offense could result in jail time

70% of Canadians agree with mandatory vaccines for children: poll

The debate for pro and anti vaccinations has heated up after a measles outbreak in Vancouver

UPDATE: Woman, off-duty cop in critical condition after stabbing outside B.C. elementary school

The officer was interceding in an alleged assault when he and the woman were stabbed

Jr. Golds take third in Valley Championships

Salmon Arm team moves to provincials after a near-undefeated regular season

‘A little baloney’ in PM’s claim about solicitor-client privilege on SNC-Lavalin

The Conservatives and NDP want Trudeau to waive that privilege so Wilson-Raybould can offer her side of the story

Proposed edible pot rules are wasteful, would leave products tasteless: critics

When Canada legalized weed last fall, it only allowed fresh or dried bud, oil, plants and seeds

Samsung folding phone is different – but also almost $2,000

But most analysts see a limited market for foldable-screen phones

Most Read