Canada added 63,800 net jobs last month (more than tripling expectations) with unemployment holding steady at 5.5 per cent for the third consecutive month, according to a report by Statistics Canada.
Analysts polled by
Reuters predicted a net gain of 20,000 jobs in August, alongside a slight climb for the unemployment rate (up to 5.6% from 5.5% the previous month).
Average hourly wage for permanent employees has also creeped upwards to 5.3%, compared to 5.2% annual rise in August.
Tu Nguyen, economist at RSM Canada, has credited the lack of change in unemployment amid new jobs to two different factors - population growth and a slowdown in hiring.
On the topic, Tu elaborated via LinkedIn: “The rise in job numbers is offset by the number of people entering the workforce, primarily via immigration. This is reflected in the rise in part time employment as newcomers might not find full time work right away.
“But while employers have slowed down on hiring, they are also holding onto their talent, and there have been no widespread layoffs,” she added.
To keep the unemployment rate constant, approximately 50,000 additional jobs per month are needed given the immigration-driven population growth.
However, it seems this growth in jobs has the potential to lead to another rate hike towards the end of the year, says Derek Holt, vice president of capital markets economics at Scotiabank.
"Wages are just going off the charts," Holt said. "With wage numbers like this and the fact that we haven't had a soft patch on core inflation measures in Canada like they've had in the US, I would think we're still in hike mode in October,” he concluded.
Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our
contact page.