The latest Labour Force Survey captures Canada’s labour market conditions for the week of April 9 to 15, 2023.
The employment gains were more than double what analysts surveyed by Reuters had forecast. Experts had predicted that a net 20,000 jobs would be gained in April and the unemployment rate would edge up to 5.1 percent, Reuters reported.
All job gains were in part-time work. It was the first notable increase in part-time work since October 2022. In April, Canada gained 47,600 part-time jobs, which more than offset the 6,200 full-time jobs lost.
Average hourly wages were up 5.2 percent on a year-over-year basis, growing faster than inflation, which was 4.3 percent in March. Experts predict it will fall to about 3 percent by mid-year.
The Bank of Canada watches average hourly wages closely, as higher wages cold put upward pressure on prices. Canada’s central bank has been warning that a tight labour market could make it difficult to get inflation back to its target of 2 percent.
The central bank has been holding its key interest rate at 4.5 percent, after a period of aggressive rate hikes.
The labour force survey shows that despite the higher interest rates, the Canadian labour market has remained resilient, posting faster-than-expected growth and steady unemployment.