Your Business News
Canada’s job market shows little sign of slowing
October 7, 2022
Authored by RSM Canada LLP
Joe E. Reilly, CPA, CA, CBV shared this article
REAL ECONOMY BLOG | October 07, 2022
Canada’s economy in September reversed the slowing labour market of the summer, adding 21,100 jobs while unemployment fell to 5.2%, according to government data released Friday.
Employment among women in their prime working age grew for the first time since May as children headed back to school, allowing for mothers to return to full-time work.
Gains in employment came mainly from the services sector (45,900), while the goods-producing sector lost jobs (24,800).
Most losses were from manufacturing (27,500); transportation and warehousing (18,200); and information, culture and recreation (21,500)
Gains in employment were from educational services (46,000), reversing the decline in August as people headed back to school.
Similarly, health care gained 23,800 jobs. While this is not enough to offset the recent exodus of health care workers and is far from enough to remedy the shortage, this is a much-needed addition.
Manufacturing, on the other hand, offers clear evidence of a slowing economy with the second consecutive month of job losses.
Manufacturing is one sector where sluggish global demand and an impending global recession can most clearly be seen, even though domestic demand remains solid.
It does not help that the labour force participation rate fell another 0.1 percentage points to 64.7%. Canada’s aging population, with large numbers of baby boomers retiring, will continue to put pressure on labour supply.
With wage growth well above 5% and job vacancies still high, all data points to a tight labour market. There is little doubt that the Bank of Canada will continue its interest rate hikes to restore price stability. We expect a 50 basis-point increase in October and another hike in December, bringing the policy rate above 4% by the end of the year.
Call us at 1 855 363 3526 or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Tu Nguyen and originally appeared on 2022-10-07 RSM Canada, and is available online at https://realeconomy.rsmus.com/canadas-job-market-shows-little-sign-of-slowing/.
RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit rsmcanada.com/aboutus for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.
FCR a proud member of RSM Canada Alliance, a premier affiliation of independent accounting and consulting firms across North America. RSM Canada Alliance provides our firm with access to resources of RSM, the leading provider of audit, tax and consulting services focused on the middle market. RSM Canada LLP is a licensed CPA firm and the Canadian member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM Canada Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how FCR can assist you, please call us at 1 855 363 3526