Canada’s economy added 37,000 jobs in January as unemployment declines to 5.7%

The Canadian economy added 37,000 jobs in January as unemployment fell slightly to 5.7 per cent, the first decline since December 2022, according to a Friday report from Statistics Canada.

After three consecutive months of little change in the jobs rate, the January figures were better than economists expected but were mostly driven by an increase in part-time work.

Workers’ wages, which have been growing rapidly as Canadians seek compensation to account for inflation, rose 5.3 per cent from a year ago.

Employment rose across several sectors in January, led by wholesale and retail trade, as well as finance, insurance, real estate, rental and leasing. Meanwhile, accommodation and food services saw the largest employment decline.

Amid high interest rates, Canada’s unemployment rate had been trending upward last year, rising from 5.1 per cent in April to 5.8 per cent in December.

More to come.