Canada sheds 88000 net jobs, but sees full-time gains

Lifting the basic personal amount would put more money in the hands of the working poor help stimulate the economy and would also not have the effects on labour costs or small business profit margins that we see with steep minimum wage increases

Statistics Canada says the economy lost 88000 jobs in January

Porter said weak jobs report in January make it more likely the Bank of Canada will move slowly on more hikes to interest rates.

The province saw an unemployment rate of 5.4 per cent in January - the same as Quebec.

The decrease was driven by the loss of 137,000 part-time positions, including more than 59,000 in Ontario.

But on the other hand, the agency said the economy generated 49,000 full-time positions last month.

A closer look at the January data showed the number of paid employee positions also experienced a significant loss last month by shedding 112,000 positions.

A payback was due for Canada's labor market in January, after a stellar performance in 2017 that saw the biggest increase in jobs since 2002.

"A mysterious mix of good and bad, with the latter's impact blunted by how strong job gains were in the lead up to these figures", Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce, said in a note to investors.

Even with the overall decline in January, Canada has been on a strong run of job creation that has seen the country add 414,100 full-time jobs over a 12-month period.

Economists are always cautious about reading too much into one-month of numbers in a data series that can be volatile. That compares with December's figures of a 56,200-person labour force, with 48,500 people working and 7,700 looking for work.

"January saw an (88,000) drop in employment, reversing about half of the spectacular gains we registered late a year ago".

"The concentration of the job loss in Ontario and the focus upon lost part-time jobs in that province will no doubt feed debate on whether large minimum wage hikes took a toll on employment", Scotiabank's Derek Holt wrote in a note to clients. Thomas unemployment rate ends 2017 at 6.2% .

Still, despite the job loss of part-time jobs, Ontario's unemployment rate remained at 5.5 per cent in January as fewer people were participating in the labour market.

However, economists also pointed to possible connections between Ontario's minimum wage and Canada's stronger average wage growth of 3.3 per cent in January. The Northeast had the lowest unemployment in B.C. last month.

For most of past year, wage growth was sluggish even though employers were on a hiring spree.

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