Canada’s job market sees minimal growth in December

OTTAWA – Canada’s labor market displayed marginal growth in December, with the economy adding just 100 jobs, effectively maintaining the unemployment rate at a steady 5.8%. A closer look at the employment data reveals a shift in the job landscape, with full-time employment falling by 23,500 positions, which was nearly balanced out by a rise in part-time jobs.

The wage scenario, however, painted a brighter picture for employees, as hourly wages climbed by 5.4% compared to the same period last year. This increase comes at a time when the Bank of Canada holds a cautious stance on its monetary policy, keeping interest rates at five percent amidst the ongoing wage trends and looming inflationary pressures.

Economic experts are keeping a close eye on these developments, with projections indicating that the unemployment rate could escalate to 6.5% by the middle of 2024. This anticipated change in the job market could be a significant factor in the Bank of Canada’s decision-making process regarding future interest rate adjustments.

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