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Job Growth in Canada: A Positive Trend
In January 2024, Canada’s economy demonstrated remarkable resilience by adding 76,000 jobs, marking the third consecutive month of growth. This surge in employment comes at a critical time as the nation braces for potential economic repercussions from U.S.
tariffs imposed by President Donald Trump. The unemployment rate saw a slight decline of 0.1 percentage points, settling at 6.6 percent. Notably, the manufacturing sector led the charge with an impressive gain of 33,000 jobs, according to Statistics Canada’s monthly labour force survey.
Impact of Tariffs on Employment
Despite the positive job growth, the looming threat of tariffs has raised concerns among economists. Many warn that these tariffs could trigger mass layoffs, particularly within Canada’s manufacturing sector, which has been a cornerstone of the economy.
The latest jobs report highlights the precarious balance Canada must maintain as it navigates these economic challenges. The youth demographic, aged 15 to 24, experienced a significant drop in unemployment rates, falling to 13.6 percent from a high of 14.2 percent in previous months.
This trend is encouraging, yet it underscores the need for continued vigilance in the face of external economic pressures.
Wage Growth and Employment Trends
Average hourly wages across Canada also saw an increase of 3.5 percent, translating to a rise of $1.23, bringing the average wage to $35.99.
While this growth is a positive indicator, it represents a slowdown from the 4.0 percent annual gains observed in December. Since November, Canada has added a total of 211,000 jobs, with both full-time and part-time positions contributing to this growth.
Ontario emerged as the leader in employment growth, adding 39,000 new jobs, followed closely by British Columbia with 23,000 new positions.
