Unemployment Rate Dips To New Record Low
The Canadian job market continued to tighten in May as the unemployment rate hit another record low and wages continued to push higher, maintaining the pressure on the Bank of Canada to keep raising interest rates.
Employment rose by 40,000 (+0.2%) in May and the unemployment rate edged down to 5.1%, according to Statistics Canada.
The employment increase was driven by gains in full-time work among young and core-aged women. The increase was spread across several industries, led by wholesale and retail trade, and was concentrated in Alberta.
Total hours worked were little changed in May, but were up 5.1% compared with 12 months earlier.
Average hourly wages increased 3.9% (+$1.18 to $31.12) on a year-over-year basis.
Amid a number of recent indicators of increasing labour demand and limited supply, employment growth resumed in May after pausing in April. Total employment increased by 40,000 (+0.2%) in May, including strong growth in full-time work (+135,000; +0.9%). Part-time employment dropped by 96,000 (-2.6%).