Canadian Economy Rises With 90,000 Jobs Added in April, Defying Predictions

By John Lopez

May 10, 2024 05:20 PM EDT

The Canadian economy experienced a significant boost in April, defying the expectations of many economists, CBC reports.

According to the latest Labour Force Survey numbers from Statistics Canada, the country added a remarkable 90,000 jobs, far surpassing the predicted 20,000. 

This surge in employment comes after a loss of 2,200 jobs in March, raising hopes for a robust economic recovery.

Unexpected Job Growth Across Multiple Demographics, Industries

The increase in employment was primarily driven by part-time work, with over 50,000 new positions in that category. 

Additionally, employment rose significantly among those aged 15 to 24, with 40,000 new jobs created for this demographic. Employment gains were also seen among women and core-aged men (25 to 54 years old).

Various industries contributed to the job growth, with notable increases in professional, scientific, and technical services, accommodation and food services, health care and social assistance, and natural resources. However, employment in utilities decreased.

READ MORE: Bank of Canada Warns of Stability Risks Amidst Record High Interest Rates, Asset Valuation Concerns

CANADA-JAPAN-AUTOMOBILE-HONDA-ENERGY
Workers continue vehicle assembly shortly before the line was shut down for an event at the Honda of Canada Manufacturing Plant 2 in Alliston, Ontario, on April 25, 2024 where it was announced that Japanese automaker Honda will make the largest automotive investment in Canada's history worth Can$15 billion (US$11 billion) electric vehicle investment in Ontario that will see four new manufacturing plants built in the province.
(Photo : Photo by PETER POWER/AFP via Getty Images)

Stable Unemployment Rate Amidst Economic Expansion

Despite the significant job gains, the unemployment rate remained at 6.1%. CIBC senior economist Andrew Grantham explained that this stability could be attributed to solid population growth alongside employment growth (via CBC). 

He noted, "Within these numbers is strong employment growth but also still strong population growth." Also, one encouraging aspect of April's job report was the increase in private-sector employment after several months of stagnation.

Average hourly wages increased 4.7% year over year, reaching $34.95 in April. However, this was slightly lower than the previous month's increase of 5.1%. Grantham highlighted the importance of wage growth, noting its implications for inflation and the Bank of Canada's monetary policy decisions.

The Bank of Canada will consider this robust job growth as it assesses the need for changes in interest rates. Economists anticipate that the bank may lower its trend-setting policy rate in the coming months, with April's consumer price index data playing a crucial role in the decision-making process.

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