MNI DATA ANALYSIS: Canada Jobs Top Expectations, Wages Pick Up>

By Yali N'Diaye

     OTTAWA (MNI) - The Canadian economy added 66,800 jobs in January, 

with more signs that the wage growth slowdown that started in the spring 

of last year is over, data published Friday by Statistics Canada showed. 

     The report reflected a robust labor market picture, although 

details showed more weakness in oil-rich provinces. 

     Gains in private sector services were behind the overall 

improvement, with youth employment particularly benefitting. 

     Employment was stronger than the 5,000 gain expected by analysts in 

a MNI survey, and was evenly split between full-time (+30,900) and 

part-time (+36,000). 

     The unemployment rate rose to 5.8% from 5.6%, while analysts had 

forecast 5.7%. However, this increase was not in contradiction with the 

overall stronger picture as it resulted from a rise in the number of 

people looking for work. 

     The participation rate reached 65.6% in January, its highest level 

since December 2017. 

     Meanwhile, hours worked increased 1.2% year-over-year, after rising 

0.9% in December, an encouraging sign for overall activity in the 

country at a time growth is expected to further slow down due to the 

weakness in the oil sector. 

     - WAGES NO LONGER SLOWING 

     Average weekly wage growth for permanent workers picked up to 1.8% 

year-over-year in January from 1.5% in December. 

     Wage growth for that category had been slowing down since reaching 

a peak at 3.9% in May 2018, falling below 3% in the summer. The growth 

rate has been below 2% since October 2018. 

     Wage growth for all workers was up 2.0% year-over-year in January, 

the same as in December. 

     - SERVICES, PRIVATE SECTOR LEAD 

     Another sign of the strength of the report was that gains were led 

by the private sector, were employment increased by a record 111,500. 

     Job creation was concentrated in the services sector, with a record 

99,200 jobs created over the month. Gains were particularly strong in 

wholesale trade and professional, scientific and technical services. 

     Goods-producing industries, on the other hand, shed 32,300 jobs 

over the month, after adding 16,300 in December. Weakness was widespread 

across industries, led by agriculture. 

     Employment in manufacturing fell 5,500, and it was down 8,500 in 

construction. During the month of January, housing starts fell to a 

seasonally adjusted annual rate of 207,968 from 213,630 in December, 

according to Canada Mortgage and Housing Corporation. 

     The total number of employees rose a record 127,400 in January, 

while self-employment decreased by 60,700. 

     Youth particularly benefitted from the improvement as employment 

for people between the age of 15 and 24 grew by 52,800, the largest gain 

since April 1986. 

     - JOBS DOWN IN OIL-RICH PROVINCES 

     That being said, weakness in the oil sector is taking a toll on job 

creations. 

     Employment in Alberta fell 15,500 on the month, and it was down 

2,800 in Saskatchewan. 

     Overall employment in natural resources was down 4,600 over the 

month. 

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

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