“A multi-decade low on the jobless rate and firmer wage growth should dull some of the BoC rate-cut chatter, as should better momentum in areas like trade and housing (at least in Toronto) so far during the spring data run.” (Robert Kavcic, BMO, June 7, 2019)

Canada’s robust job market continues to outperform many economic projections. Indeed, Canada recorded its lowest unemployment rate on record in May of this year.

In the wake of the huge 165,000 employment gain in April, it was rather surprising that Canada reported a relatively robust 27,700 jobs increase in May. Moreover, the entire growth in Canadian employment in May was in full-time jobs, even as the unemployment rate fell sharply to 5.4%, its lowest level in 45 years.

Wage growth also increased to 2.8% y/y, a substantial increase from the 2.4% y/y pace two months earlier.

In May the two largest provincial sources of employment growth were Ontario and British Columbia.

Employment in Ontario rose by 21,000 in May, and the provincial unemployment rate fell to 5.2% as fewer people searched for work.

And following after very little job growth in the previous five months, employment in BC expanded by 17,000 in May and the BC unemployment rate fell to 4.3%.

In closing, the strong April and May jobs data confirm that Canada’s economy is clearly on a path back to stronger growth after nearly experiencing a recession in the previous two quarters.

Along with the strong jobs reports, additional data also confirm a strong rebound in GDP in March and April, signs of stabilization in the housing sector, and as well, some improvement in Canadian exports.  

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)