Canada’s unemployment rate drops to 6.6% as job gains beat

Article content

Canada’s economy added 76,000 jobs in January and the unemployment rate declined to 6.6 per cent from 6.7 per cent in December, Statistics Canada said on Friday. This represents the second consecutive monthly decline for Canada’s jobless rate.

Article content

The job gains were triple economists’ expectations of 25,000 jobs.

The decline in the jobless rate was driven by a drop in unemployment among Canadian youth. The rate for people aged 15 to 24 was 13.6 per cent in January, down from a high of 14.2 per cent in December and August.

Article content

The total number of unemployed people was 1.5 million in January, up 251,000 from the year before. The employment rate, the proportion of the population 15 and older who are employed, increased 0.1 percentage points to 61.1 per cent during the month. This was the third consecutive monthly increase.

“Among those who were unemployed in December, 65.4 per cent remained unemployed in January, higher than the corresponding proportion in January 2024 (61.7 per cent) (not seasonally adjusted),” said Statistics Canada. “This indicates that many unemployed people are facing continued difficulties finding employment, despite recent employment growth.”

Employment growth was concentrated in the core aged working group (ages 25 to 54 years old), where 36,000 jobs were added among women and 28,000 jobs added by men.

Manufacturing added 33,000 jobs and professional, scientific and technical services added 22,000 jobs, leading the way in the monthly gains. Employment increased by 15,000 jobs in accommodation and food services and construction added 19,000 jobs in January. Declines in employment were noted in utilities, natural resources, finance, insurance, real estate rental and leasing and educational services.

Article content

Average hourly wages were up 3.5 per cent year-over-year, down from four per cent the previous month. Wage growth was up 3.7 per cent for the month for permanent employees, down from 3.8 per cent in December. Total actual hours worked rose 0.9 per cent in January and were up 2.2 per cent year-over-year.

Public sector employment was little changed in January, but was up 107,000 from the year before. Private sector employment was up 215,000 compared to last year.

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

Share this article in your social network