www.cbc.ca Chapter 21

Page 1: Job Market Overview

Unemployment Rate: Decreased to 6.7% in December, down from 6.8%.
Job Gains: Canadian economy added 91,000 jobs, exceeding predicted growth.
- Economists expected only about 25,000 jobs to be added.
- Previous month saw an addition of 51,000 jobs.
Source of Data: Statistics Canada report released on January 10, 2025.
Implications: The report indicates a positive shift in Canada's job market, surprising many economists.

Economic Outlook: High inflation and interest rates risks are mostly resolved; growth is anticipated for 2025.
- Expert Opinion: Doug Porter, BMO's chief economist, comments on gradual improvement.
Labour Market Dynamics: Unemployment rate drop partly due to demographics; more jobs created than new workforce entrants.
- Trend noted: Majority of new jobs are full-time positions.
Sector Performance: Job gains led by:
- Educational Services
- Health Care and Social Assistance
- Finance
- Transportation
Sector Details: Public sector saw an increase of 40,000 jobs; private sector growth was limited to 27,000.
Self-Employment Growth: Increased by 24,000 for the first time since February.
Wage Trends: Average hourly wage rose by 3.8% ($1.32), totaling $35.77, marking the slowest growth since May 2022.
Expert Analysis: Andrew Grantham from CIBC notes better-than-expected job gains but highlights the need for interest rate cuts to address excess capacity in the economy.

Dependence on U.S. Markets: 8.8% of Canadian workers employed in sectors reliant on U.S. demand for exports.
Key Employment Areas: Major job concentrations in:
- Alberta
- Oil and Gas Extraction
- Pipeline Transportation
- Primary Metal Manufacturing
- Transportation Equipment Manufacturing
Trends in Exports: Growth in sectors that heavily trade with the U.S. highlights the importance of cross-border economic relationships.