Canada adds 150,000 jobs in January

Statistics Canada data is showing that Canada far exceeded expectations by adding 150,000 jobs in January 2023.

• The unemployment rate remained steady at 5%.

• The job growth has been steady for the past 5 months and the pace is accelerating.

• Bonds and the loonie (Canadian dollar) saw a positive response to the strong job growth.

• The tight labor market raises questions about the Bank of Canada's stance on interest rate hikes.

• Macklem expects the lagged effects of higher rates to slow economic growth in 2023.

• The Bank of Canada may hike rates further if the economy shows stronger-than-expected growth.

• Canada is enjoying rapid population growth due to an open immigration policy.

• Non-permanent residents are seeing outsized job gains.

• The labor force participation rate increased 0.3 percentage points to 65.7%.

• Average hourly wages in Canada rose 4.5% in January.

• Governor Macklem said wage growth in the 4-5% range is not consistent with reaching the 2% inflation target.

• The employment rate reached 62.5%, a level last seen in April/May 2019.

• Total hours worked in January rose 0.8% monthly and 5.6% compared to a year earlier.

• Employment increased in 5 provinces, led by wholesale and retail trade.

See the full story here: https://www.bnnbloomberg.ca/statistics-canada-to-release-january-jobs-report-this-morning-1.1882088

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