Oct 15th, 2024: Statistics Canada’s latest report shows a positive shift in employment for September 2024. The country added 46,700 jobs, leading to the first decline in the unemployment rate this year, now at 6.5%. This uptick in job growth includes a notable increase of 112,000 full-time positions. Despite the gains, the employment rate fell slightly as population growth outpaced job creation.
Private sector employment continues to rise, while wage inflation has moderated, with hourly wages up 4.6% year-over-year, down from 5.0% in August. Public sector jobs dipped, but remain higher year-over-year, while self-employment stayed steady.
Labor Market Trends and Monetary Policy Impact
The resilience of the labor market may temper the scale of future Bank of Canada rate cuts, as strong job numbers suggest the economy is still holding steady. However, wage inflation remains a concern for policymakers. While wage growth has slowed slightly, inflationary pressures from wages will be a key focus in the upcoming monetary decisions.
Economists remain divided on the size of potential rate cuts, with some predicting a 25-basis-point cut, while others foresee a larger 50-basis-point reduction.
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