MNI 5 THINGS: Canada Wage Growth, Unemployment Rate Stabilize>

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

By Yali N'Diaye

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

data on the Canadian Labor Force Survey released Friday by Statistics 

Canada: 

     - The Canadian economy added 9,300 jobs in December, slightly more 

than the 6,000 increase expected by analysts in a MNI survey, following 

a record 94,100 employment gain in November. On a 12-month basis, the 

Canadian economy added 163,300 jobs, much less than the 427,300 gain 

recorded the previous year. On the bright side, full-time employment 

continued to be the main driver of job creation in 2018. 

     - The participation rate remained unchanged at 65.4% in December, 

leaving the unemployment rate stable at 5.6%, while analysts had 

expected it to edge up to 5.7%. Details of the report were mixed. 

     - December put an end to a six-month streak of slowing wage growth, 

a welcome development for the Bank of Canada, although the current pace 

continues to be slower than where it should typically be at this stage 

of the economic cycle. Average hourly wage growth picked up to 2.0% in 

December from 1.7% in November year-over-year. For permanent workers, it 

stabilized at 1.5%. 

     - On the downside, youth employment, a source of concern for the 

central bank, contracted by 16,200 over the month. Adding to the 

negative picture, the decline was led by full-time employment, which 

fell 19,100. The unemployment rate increased to 11.1%, with a 

participation rate down to 62.3%, the lowest since October 1998. In 

2018, youth employment was down 73,100, after rising 37,400 in 2017. 

     - Goods-producing industries were the driver behind December 

employment increase, with 22,600 jobs added in the sector, led by a 

23,900 gain in manufacturing. Employment in services, however, fell 

13,300 in December, led by a 26,100 drop in wholesale and retail trade, 

as well as a 16,500 decrease in public administration. Both the public 

and private sectors shed jobs in December, for a total decline of 

37,100. Self-employment, on the other hand, rose 46,400. 

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

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