Latest news with #Statscan
GMA Network
2 days ago
- Business
- GMA Network
Canada's unemployment rate in May at almost nine-year high outside of COVID years
OTTAWA, Canada - Canada's unemployment rate in May jumped to its highest level in almost nine years outside of the pandemic era with 1.6 million jobless people in the country amid a constrained labor market, data showed on Friday. The unemployment rate ticked up to 7% in May from 6.9% in April, a third consecutive monthly increase, Statistics Canada said, adding that the total jobless people in May were almost 14% higher than what was seen a year ago. This was primarily driven by an almost flat employment growth amid a rising population, even though there were no major mass layoffs. This level of unemployment was last seen in September 2016 after the COVID-era unemployment numbers of 2020 and 2021 are excluded, Statscan said. "People are facing greater difficulties finding work in the current labor market," it said. The total number of people employed saw meager addition of 8,800 people. The employment number has a standard error margin of 32,000. Analysts polled by Reuters had forecast the unemployment rate to be at this level due to the impact of U.S. tariffs on Canada. They had estimated total employment number to drop by 12,500. Trump imposed tariffs in March on a variety of Canadian products, followed by on steel and aluminum, and later in April on automobiles. These have already led to fewer job additions and some layoffs. The Bank of Canada has said that the tariffs and the confusion over the scope and extent of them have created uncertainty that is hurting investments, hiring intentions and risking job losses, and this trend is likely to continue. This was evident in the duration of unemployment which has been consistently rising with jobless people spending an average of 21.8 weeks searching for work last month, up from 18.4 weeks from a year ago. The average hourly wage growth of permanent employees, a metric closely watched by the Canadian central bank to gauge inflationary trends, was unchanged at 3.5% in May. The employment number was driven by increase in wholesale and retail trade and was offset by drop in manufacturing and government jobs by 2.5% reflecting the expiration of election-related temporary hiring. — Reuters
Yahoo
2 days ago
- Business
- Yahoo
Canada's unemployment rate in May at almost nine-year high outside of COVID years
OTTAWA (Reuters) -Canada's unemployment rate in May jumped to its highest level in almost nine years outside of the pandemic era with 1.6 million jobless people in the country amid a constrained labor market, data showed on Friday. The unemployment rate ticked up to 7% in May from 6.9% in April, a third consecutive monthly increase, Statistics Canada said, adding that the total jobless people in May were almost 14% higher than what was seen a year ago. This was primarily driven by an almost flat employment growth amid a rising population, even though there were no major mass layoffs. This level of unemployment was last seen in September 2016 after the COVID-era unemployment numbers of 2020 and 2021 are excluded, Statscan said. "People are facing greater difficulties finding work in the current labor market," it said. The total number of people employed saw meager addition of 8,800 people. The employment number has a standard error margin of 32,000. Analysts polled by Reuters had forecast the unemployment rate to be at this level due to the impact of U.S. tariffs on Canada. They had estimated total employment number to drop by 12,500. Trump imposed tariffs in March on a variety of Canadian products, followed by on steel and aluminum, and later in April on automobiles. These have already led to fewer job additions and some layoffs. The Bank of Canada has said that the tariffs and the confusion over the scope and extent of them have created uncertainty that is hurting investments, hiring intentions and risking job losses, and this trend is likely to continue. This was evident in the duration of unemployment which has been consistently rising with jobless people spending an average of 21.8 weeks searching for work last month, up from 18.4 weeks from a year ago. The average hourly wage growth of permanent employees, a metric closely watched by the Canadian central bank to gauge inflationary trends, was unchanged at 3.5% in May. The employment number was driven by increase in wholesale and retail trade and was offset by drop in manufacturing and government jobs by 2.5% reflecting the expiration of election-related temporary hiring. Sign in to access your portfolio
Observer
09-05-2025
- Business
- Observer
Canada's unemployment rate jumps to 6.9 per cent
OTTAWA: Canada's unemployment rate rose to 6.9 per cent in April, the highest since November, as US tariffs started to hit Canada's export-dependent economy in earnest, data showed on Friday. The high unemployment rate in Canada, where the number of jobless people is inching towards 1.6 million, was partly a result of US President Donald Trump's tariffs on a raft of Canadian imports, Statistics Canada said, referring to the jobs shed in the manufacturing sector. Overall, the employment number was largely flat with minimal gains of net 7,400 jobs in April, it said. This was in contrast to a loss of 32,600 jobs the prior month. Analysts polled by Reuters had predicted employment to increase by 2,500 people and the unemployment rate to increase to 6.8%. The 6.9 per cent figure matched November unemployment, which was an eight-year high outside of the pandemic era. Trump's tariffs on Canadian steel and aluminium in March and automobiles in April, along with import duties on a broad range of products with various reductions and exemptions have impacted businesses and households. The Bank of Canada has warned that growth would take a major hit in coming months as exports fall, prices increase, hiring reduces and layoffs accelerate. It has vowed to act decisively if the economy needs urgent support. "Overall, we are seeing a job market that was weak heading into the trade war, now looking like it could soon buckle. Today's report supports the case for a Bank of Canada cut in June," said Ali Jaffery, senior economist at CIBC Capital Markets. Currency swap market bets show odds of a 25 basis point rate cut in June at over 55 per cent roughly. The Canadian dollar was trading up 0.1% to 1.3909 US dollar, or 71.90 US cents. Yields on two-year government bonds fell 3.3 basis points to 2.586% after the labour force data was released. The number of unemployed people, or those looking for work or on temporary layoff, increased by 39,000 or 2.6 per cent in April and was up by 189,000 or 13.9 per cent on a year-over-year basis. "People who were unemployed continued to face more difficulties finding work in April than a year earlier," Statscan said, adding that among those who were unemployed in March, 61% remained unemployed in April which was almost four percentage points higher than the same period last year. The tariffs and the uncertainty around them especially hit the manufacturing sector which shed 31,000 jobs in the month, Statscan said, adding retail and wholesale trade also saw a drop in the number of employed people. — Reuters
Express Tribune
09-05-2025
- Business
- Express Tribune
Canada's jobless rate nears 1.6M, partly due to Trump-era tariffs on imports, says Statistics Canada
The Canadian dollar was trading up 0.08% to 1.3912 US dollar, or 71.88 U.S. cents. PHOTO: REUTERS Canada's unemployment rate rose to 6.9% in April, matching the November figure when joblessness in the country scaled an eight-year high outside of the pandemic era, data showed on Friday. The high unemployment rate in Canada, where the number of jobless people is inching towards 1.6 million, was partly a result of US President Donald Trump's tariffs on a raft of Canadian imports, Statistics Canada said. Overall, the employment number was largely flat with minimal gains of net 7,400 jobs in April, Statistics Canadasaid. This was in contrast to a loss of 32,600 jobs the prior month. Analysts polled by Reuters had predicted employment to increase by 2,500 people and the unemployment rate to increase to 6.8%. Trump's tariffs on Canadian steel and aluminum in March and automobiles in April, along with import duties on a broad range of products with various reductions and exemptions has impacted businesses and households. The Bank of Canada has warned that growth would take a major hit in coming months as exports fall, prices increase, hiring reduces and layoffs accelerate. It has vowed to act decisively if the economy needs urgent support. Currency swap market bets show odds of a 25 basis point rate cut in June at 52% roughly. The Canadian dollar was trading up 0.08% to 1.3912 US dollar, or 71.88 U.S. cents. Yields on two-year government bonds fell 2.4 basis points to 2.566% after the labor force data was released. The number of unemployed people, or those looking for work or on temporary layoff, increased by 39,000 or 2.6% in April and was up by 189,000 or 13.9% on a year-over-year basis. 'People who were unemployed continued to face more difficulties finding work in April than a year earlier,' Statscan said, adding that among those who were unemployed in March, 61% remained unemployed in April which was almost four percentage points higher than the same period last year. The tariffs and the uncertainty around them especially hit the manufacturing sector which shed 31,000 jobs in the month, Statscan said. The employment rate, or the proportion of the working age population that is employed, was at 60.8% in April, following a decline of 0.2 percentage points in March. This was a six-month low, the statistics agency said. The employment rate had been depressed for most of 2023 and 2024 as population growth outpaced employment gains. However, inrecent months population growth has not been very high but employment gains have slowed. Employment in the public sector increased by 23,000 or up 0.5% in April, following three consecutive months of little change, especially due to increased temporary hiring for the federal election. The average hourly wage growth of permanent employees, a metric closely watched by the Canadian central bank to gaugeinflationary trends, was at 3.5% in April, same as March.
Economic Times
09-05-2025
- Business
- Economic Times
Mark Carney in dire straits: Canada, one of the largest and richest countries in the world, added just 7,400 jobs in April as unemployment rate rises to 6.9%
AP Canada's job market hit a wall in April as just 7,400 jobs were added. Unemployment jumped to 6.9% amid U.S. tariffs, manufacturing losses, and weak growth. Will a Bank of Canada rate cut be next? Full story inside. Mark Carney in dire straits: Canada, one of the largest and richest countries in the world, added just 7,400 jobs in April as unemployment rate rises to 6.9%- Canada's job market took a hit in April, with just 7,400 new jobs added and the unemployment rate climbing to 6.9%, its highest level since November 2023. As one of the world's wealthiest and most resource-rich nations, this sharp slowdown in employment growth raises fresh concerns about the country's economic resilience. Much of this weak job performance is being linked to U.S. tariffs, especially those targeting key Canadian exports like steel, aluminum, and automobiles. Data from Statistics Canada paints a troubling picture: nearly 1.6 million Canadians are now out of work, and the job market is starting to show serious cracks under growing international pressure. The unemployment rate in April reached 6.9%, matching levels last seen in November, and edging past analysts' expectations of 6.8%. While the economy technically added jobs—7,400 net gains—this growth was too small to keep up with the expanding labor force. Last month, the country lost 32,600 jobs, making April's improvement look modest by comparison. The driving force behind these numbers? A combination of U.S. trade tariffs and slowing export demand. Donald Trump's tariffs on Canadian steel, aluminum, and now vehicles have begun to bite, hitting manufacturing jobs hard. In one of the starkest signals yet, 31,000 jobs were lost in Canada's manufacturing sector in April alone, according to Statscan. That's a serious blow for an economy heavily reliant on exports. The job losses were directly tied to U.S. import duties and the broader uncertainty caused by the trade tensions. Retail and wholesale trade also showed weakness, with both sectors posting job losses. 'People who were unemployed continued to face more difficulties finding work in April than a year earlier,' Statscan reported. Among those unemployed in March, 61% remained unemployed in April, up nearly 4 percentage points from the same time last year. With economic data weakening and job growth barely moving, many economists now expect the Bank of Canada to respond with an interest rate cut in June. Market odds for a 25 basis point cut now sit above 55%, according to the currency swap market. Ali Jaffery, senior economist at CIBC Capital Markets, said the job market was already soft before the trade war started and now appears "like it could soon buckle." The Canadian dollar edged up slightly by 0.1% to 1.3909 U.S. dollar (around 71.90 cents), while two-year government bond yields fell by 3.3 basis points to 2.586%, reflecting growing investor concern. There were some positive signs in the data, though limited. Public sector employment grew by 23,000 jobs (0.5%) in April, mainly due to temporary hires related to the federal election. However, outside of this bump, job growth remained stagnant. Wage growth also remained flat. Average hourly wages for permanent employees rose 3.5% year-over-year, the same pace as in March. While wage growth at this level can help workers keep up with inflation, it doesn't signal strong labor market momentum. Another concern raised by Statistics Canada was the employment rate, which measures the share of the working-age population with jobs. That figure dropped to 60.8% in April, the lowest in six months. In March, it had already dipped by 0.2 percentage points. This decline reflects a broader trend where employment gains haven't kept pace with population growth. While population growth has recently slowed, hiring has cooled even faster, putting pressure on the labor force and social systems. Q1: Why did Canada's unemployment rate rise to 6.9% in April? Due to weak job growth and U.S. tariffs hitting manufacturing. Q2: Will the Bank of Canada cut interest rates in June? Markets expect a likely rate cut to support the slowing economy.
