The Canadian dollar unemployment rate refers to the unemployment rate in Canada, an important economic indicator that measures the percentage of the workforce who are unemployed and actively looking for work. Here are some key points about the Canadian unemployment rate:
Definition and calculation
- Unemployment Rate: It is calculated by dividing the number of unemployed individuals actively looking for work by the total labor force and multiplying them by 100 to get the percentage.
- Workforce: includes individuals aged 15 years and over who are working or actively looking for employment.
Significance
- Economic Index: The unemployment rate is a vital indicator of economic health. High unemployment rates may indicate economic distress, while low rates indicate a strong economy.
- Policy decisions: Policymakers, including the Bank of Canada, use the unemployment rate to make informed decisions about interest rates, fiscal policy, and other economic measures.
Factors affecting the unemployment rate
- Economic cycles: During economic expansions, unemployment usually falls. Conversely, during recessions, unemployment rises.
- Government policies: Employment programs, stimulus measures, and other government interventions can affect the unemployment rate.
- Technological changes: Technological advances can displace jobs in some sectors while creating new opportunities in others.
- Global factors: Trade policies, global economic conditions, and international events can affect employment in Canada.
Recent trends
- Impact of the pandemic: The COVID-19 pandemic has caused a significant rise in unemployment globally, including in Canada, due to lockdowns and the economic slowdown.
- Recovery efforts: Post-pandemic recovery efforts and vaccinations aim to reduce unemployment and restore economic stability.
Economic impact
- Consumer spending: High unemployment can reduce consumer spending, affecting overall economic growth.
In short, the Canadian dollar unemployment rate is a crucial measure of understanding Canada’s economic conditions. It provides insights into labor market health, influences policy decisions, and helps gauge overall economic trajectory.
Canada’s employment surprise growth up 90,000 jobs in April
Canada’s economy gained 90,000 jobs in April, well above the 20,000 average predicted by many economists in the latest Labor Force Survey figures from Statistics Canada.
The federal agency has suspended increases in hiring for part-time work, with more than 50,000 additional jobs of this type of job. There were more jobs in the professional, scientific and technical service industries.
The employment rate for 15- to 24-year-olds rose by 40,000 in April, the first monthly increase for this demographic since December 2022.
However, the unemployment rate was unchanged from the previous month, remaining at 6.1 per cent. And this is higher than a year ago.
Andrew Grantham, chief economist at CIBC, told CBC News, explaining why the unemployment rate is stabilizing despite high job growth: “Within these numbers, there is strong employment growth but there is still strong population growth as well.”
More people are also actively working or looking for work in Canada, with a 0.1 per cent increase in April, the first since June 2023.
“We’re ready to train, but unfortunately, it was very difficult to find people to work,” his company prepares and serves fresh sushi to Ontario retailers.
We can use 20 to 30 people at any time,” he said, because his company operates in cities like London, Toronto and Ottawa.
Statistics Canada said private sector employment rose in April after four months of slight change. Grantham noted that although employment growth over the past year has been at least partially driven by the public sector, April’s figures show an encouraging step.
May report: Minor changes in employment and unemployment in Canada
Employment was little changed in May (+27,000; +0.1%) The employment rate fell 0.1 percentage point to 61.3% and the unemployment rate was 6.2% in May, up 0.1 percentage points m/m and 0.9 percentage points y/y.
The employment rate for young women aged 15-24 (+48,000; +3.7%) and for women aged 55 and over (+21,000; +1.1%) increased in May. Meanwhile, employment declined among women of basic age (aged 25-54) (-40,000; -0.6%) and youth (-23,000; -1.6%).
Employment increased in May in healthcare and social assistance (+30,000; +1.1%), finance, insurance, real estate and rental (+29,000; +2.0%), business, construction and other support services (+19,000; +2.7%), as well as accommodation and food (+13,000; +1.1%). Construction (-30,000; -1.9%), transport and storage (-21,000; -1.9%) and utilities (-5,400; -3.5%) fell.
Employment rose in May in Ontario (+50,000; +0.6%), Manitoba (+7,800; +1.1%) and Saskatchewan (+5,400 +0.9%), while there were declines in Alberta (-20,000; -0.8%). Newfoundland and Labrador (-2,100; -0.9%) and Prince Edward Island (-1,100; -1.2%). Total working hours were unchanged in May and increased by 1.6% compared to 12 months earlier.
Average hourly wage among employees rose 5.1% (+$1.69 to $34.94) year-on-year in May, following 4.7% growth in April (not seasonally adjusted).
The employment rate for returning students aged 20-24 was 61.0% in May, 2.9 percentage points lower than in May 2023 (63.9%) (not seasonally adjusted).
Statistics Canada said private sector employment rose in April after four months of slight change. Grantham noted that although employment growth over the past year has been at least partially driven by the public sector, April’s figures show an encouraging step.
 with unemployment rising to 6.2%. Average hourly wages rose 5.1% to $34.94.){kind=link}