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.

Page 2: Economic Context and Job Growth

• 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.

Page 3: Canada-U.S. Trade Relationship

• 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.