Canada adds 21,000 jobs in Sept, jobless rate down: These sectors saw most hiring, wage hike
2 min read 09 Oct 2022, 05:55 PM ISTThe uptick is not because new jobs were created but because over 20,000 people left the labour force in the past month
PremiumCanada last month added 21,000 jobs pushing the jobless rate down by two-tenths of a percentage point to 5.2%, Statistics Canada reported earlier this week.
As per reports, the sudden uptick happened not because new jobs were created but because over 20,000 people left the labour force in the past month and they are not looking at coming back to work.
In fact, in the past 3 months, the economy lost 104,000 jobs in total. Hence, even after massive hiring in September, fewer people working today than there were in May.
Which sectors have the highest numbers of jobs?
The sectors that saw highest-level of hiring include the education and health-care sectors, meanwhile, the sectors that lost jobs are manufacturing, transportation and warehousing.
The construction sector was slightly down, losing about 3,330 jobs during the month, but overall, those in the industry say there is strong demand for workers.
The education sector unexpectedly lost a huge number of jobs in August but gained back 46,000 in September. Economist Royce Mendes told CBC news, "So the gain in September can't be viewed as a true reacceleration in employment. Over the past four months employment has now declined."
Meanwhile, speaking about the construction sector, Jason Ottey, a spokesperson for construction union LiUNA Local 183 in the Greater Toronto Area, says the industry is trying to train new workers up to speed in a hurry. "There are going to be dips in terms of the amount of work that's going to be available but over the long term we'll reach a point of labour market equal equilibrium," he told CBC News in an interview.
Apart from more jobs, the hourly wage has also increased significantly.
Which industries are witnessing maximum wage hikes?
Across all industries, the average hourly wage was $31.67 in September, which is 5.2% higher than last year. Even then, for the most part, it is not enough to beat the impact of inflation, which is around 7%.
Some industries are seeing more wage gains than others. Here they are:
- On average, wages for people who work professional, scientific and technical industries have risen by 9.1% in the past 12 months.
- The average wage for those in the finance, insurance and real estate sector is up by just 2.4%.
Arlene Kish, an economist with S&P Global Market Intelligence, says the central bank will take the latest data on jobs and wages as a sign that the economy can withstand more rate hikes.
"Consumer price and wage inflation rates are too high," she said. "The economy needs to cool. Given what is unfolding outside of Canada's borders, it will be hard to avoid a recession here at home."
