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Canada: Another Strong Month for Job Creation
By Benoit P. Durocher, Senior Economist
HIGHLIGHTS
f Employment growth largely exceeded expectations in November, with 153,700 jobs created.
f The goods sectors added 26,400 jobs, thanks to an increase in manufacturing. The service sectors saw 127,200 jobs created during the month. The health and social services sector stands out with an additional 43,800 jobs.
f The unemployment rate went from 6.7% to 6.0%. It is just three tenths of a percentage point short of its pre‑pandemic level.
f The employment rate (number of jobs in comparison with population aged 15 and over) rose to 61.4%. It is only four tenths of a percentage point short of where it was in February 2020.
COMMENTS
The employment market climbed at high speed in November, this in the context of a labour shortage that is no doubt hampering hiring in some sectors. For example, accommodation and food services only created 5,200 jobs in November after racking up a net loss of 53,700 jobs in September and October. The median hourly wage continued to rise, reaching $26.04 in November.
Its variation over one year is now 3.2%, not too worrisome for now, but we must keep monitoring its progress in the months to come.
More good news: the number of hours worked increased 0.7% in November. At first glance, this bodes well for real GDP by industry. However, the survey was conducted between November 7 and 13, before flooding in British Columbia, which should worsen the picture.
ECONOMIC STUDIES | DECEMBER 3, 2021
IMPLICATIONS
Despite better-than-forecast results for the labour market, it would be astounding for the Bank of Canada (BoC) to move early to tighten monetary conditions. The BoC should leave its key rates where they are at next week’s meeting.
GRAPH 1
The drop in the unemployment rate accelerated in November
Sources: Statistics Canada and Desjardins, Economic Studies In %
Feb.
March April
May June
July Aug.
Sept.
Oct.Nov.
Dec. Jan.
Feb.
March April May
June July Aug. Sept.
Oct.
Nov.
5 6 7 8 9 10 11 12 13 14
2019 2020 2021 2022
Unemployment rate
GRAPH 2
The median hourly wage continued to rise
Sources: Statistics Canada and Desjardins, Economic Studies Median hourly wage Annual variation in %
-2 0 2 4 6 8 10
2015 2016 2017 2018 2019 2020 2021 2022
