MNI 5 THINGS:Canada Wage Growth Slows Despite Strong Job Gains>

--5 Things We Learned From Canadian Labor Force Survey Data

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the November 

data on the Canadian Labor Force Survey released Friday by Statistics 

Canada: 

     - The Canadian economy added 94,100 jobs in November, the largest 

monthly increase on record, topping analysts' expectations of a 12,000 

gain in a MNI survey. In percentage terms, employment rose 0.5% on the 

month, the largest advance since March 2012. While the participation 

rate increased to 65.4% from 65.2%, the unemployment rate reached a 

record low 5.6%, below the 5.8% expected by analysts. 

     - Overall details were strong, although they did not translate into 

an acceleration in wage growth. Gains were led by a 89,900 monthly 

increase in full-time employment, which reflects a stronger business 

confidence than part-time employment. The latter was up 4,100. Just as 

in 2017, full-time jobs have been leading employment gains so far this 

year, but at a much slower pace than last year. Year-to-date employment 

is up 154,000, with full-time up 204,200 and part-time down 50,200. Even 

excluding January's 88,000 drop in employment, job creation was more 

than 100,000 below the 362,500 jobs added between January and November 

2017. Consistent with the strong full-time employment gains, hours 

worked rose 2.1% year-over-year in November, after rising 0.7% the 

previous month. 

     - In addition to being concentrated in full-time, employment gains 

were led by the private sector, another positive sign of the strength of 

the labor market. Private-sector employment rose 78,600, while the 

public sector added 8,300 jobs. 

     - On a sector basis, job gains were widespread, another encouraging 

sign, led by services, which added 67,200 positions. All the main 

services sectors added jobs in November, except for three: educational 

services (-1,700); finance, insurance, real estate, rental and leasing 

(-4,500); and information, culture and recreation (-10,400). Gains were 

led by professional, scientific and technical services (+26,000), and 

business, building and other support services (+14,600). Goods-producing 

industries added 26,900 jobs on the month, with gains in all major 

sectors, led by construction. 

     - The surprisingly strong job gains did not translate into an 

acceleration in wage growth. To the contrary, average hourly wages rose 

1.7% in November after a 2.2% gain in October year-over-year. The 

12-month growth rate for permanent workers slowed to 1.5% from 1.9%. 

Both were the smallest gains since July 2017, and have been slowing down 

since June 2018, after peaking at 3.9% in May 2018. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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