(Canadian Press)

Surge in job growth drives unemployment rate down to new 40-year low

The November employment surge was fuelled by the addition of 89,900 full-time positions

A blast of 94,100 new jobs last month has knocked the country’s unemployment rate down to 5.6 per cent — its lowest level since Statistics Canada started measuring comparable data more than 40 years ago.

The overall number marked the labour force survey’s largest monthly increase since March 2012 when there was a gain of 94,000 jobs, Statistics Canada said Friday.

READ MORE: B.C. budget surplus expected to keep growing

The November employment surge was fuelled by the addition of 89,900 full-time positions. For employee work, the private sector added 78,600 positions in November, while the public sector gained 8,300 jobs.

Last month’s increase pushed the jobless rate down from October’s reading of 5.8 per cent, which had been the previous low mark since comparable data first became available in 1976. The old statistical approach — prior to 1976 — registered an unemployment rate reading of 5.4 per cent in 1974.

But Friday’s report also contained disappointing details.

Year-over-year average hourly wage growth for permanent employees continued its decline in November to 1.46 per cent — to deliver its weakest reading since July 2017.

Experts have been expecting wage growth to rise thanks to the tightened labour market, but it has dropped every month since its May peak of 3.9 per cent. It now sits well below inflation.

READ MORE: Bank of Canada holds interest rate at 1.75%

The Bank of Canada keeps a close watch on wages ahead of its interest-rate decisions. On Wednesday, the central bank held its benchmark rate at 1.75 per cent, but in explaining its decision it highlighted other economic negatives such as weaker-than-expected business investment and the sharp drop in oil prices.

Royce Mendes of CIBC Economics said the Bank of Canada will take notice of the “massive reading” in the November jobs report as it mulls next month’s rate decision.

“The large gain in jobs will keep a January rate hike on the table for now, but we’ll need to see similarly positive evidence from other indicators and no major reversal in the next jobs report,” Mendes wrote in a research note to clients Friday.

Statistics Canada’s report Friday also said that, compared to 12 months earlier, employment was up 1.2 per cent following a net increase of 218,800 jobs. The addition of 227,400 full-time positions offset a small decrease in part-time work.

The November jobs report showed the goods-producing sector added 26,900 jobs following a notable gain of 14,800 construction positions. The services sector generated 67,200 jobs last month with help from the addition of 26,000 positions in professional, scientific and technical services.

By region, employment rose in six provinces and was led by gains in Quebec and Alberta.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Kimberley Community Band in concert

The recent concert by Kimberley Community Band featured a number of soloists.… Continue reading

Upcoming Chamber events in Kimberley

The Kimberley Chamber of Commerce is celebrating Chamber Week (Feb. 20-24) with… Continue reading

Council discusses renewing MOU with BC Timber Sales

Kimberley City Council has voted to table a discussion about a Memorandum… Continue reading

Kimberley Youth Action Network asks for City’s help in becoming legal entity

The Kimberley Youth Action Network (KYAN) is requesting that the City of… Continue reading

Friends of the Kimberley Public Library celebrate another successful year

2018 saw over 10,000 books sold to about 3000 customers.

Regional news recap

A quick recap of the top news stories this week in Cranbrook, Creston, Fernie and Kimberley.

Ammonia leak shuts down curling club in Nelson

It’s not yet clear when the leak was detected

Pavelski’s 31st goal helps Sharks top Canucks 3-2

Vancouver one point out of second NHL wild-card spot

Columbia Valley RCMP searching for misisng person

Police ask for help in finding Elizabeth Stewart, who hasn’t contacted family since Jan. 14

East Kootenay illicit drug overdose deaths lowest in B.C.

Local expert credits harm reduction efforts; declares support for legalization of opioids

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Ontario police field complaints over Amber Alert for missing girl, 11, found dead

Some said the Amber Alert issued late Thursday for Riya Rajkumar disrupted their sleep

Former B.C. premier Gordon Campbell accused of sexual touching

Accuser went to police, interviewed by Britian’s Daily Telegraph

B.C. couple attacked with acid, slashed with knife in Vietnam

Warning, graphic images: Man has burns on 80 per cent of his body, slashed with knife

Most Read