MNI BRIEF: Canada April Jobless Rate Falls To Fresh Record Low

Canada's unemployment rate fell to a fresh record low in April and wage growth remained above the central bank's target band, the federal statistics office said Friday, even as job growth was less than investors expected.

The jobless rate declined to 5.2%, in line with forecasts, from March's 5.3%. Employment climbed by 15,300 in April, less than the consensus of 40,000 jobs. Canada created 409,100 jobs in the prior two months, and lost 200,100 in the month before that, reflecting Covid closures and openings. Those swings were big in a nation of 38 million people.

March's unemployment rate was already the lowest in comparable records back to 1976. Statistics Canada’s historical annual data from before 1976 calculated using different methodology shows unemployment was 4.4% in 1969.

Average hourly wages rose 3.3% in April from a year ago following March's 3.4% rise. The Bank of Canada has said the economy is overheating and signaled it may raise its 1% benchmark rate another 50bp at the next decision June 1.