Despite 90,000 New Jobs, Unemployment Remains High

This year, the April Labor Force Survey from Statistics Canada predicted 20 000 new jobs in the next month. However, an unexpected 90 000 job opportunities became available, with part-time work contributing significantly. 

In general, employment rose among people aged 25 to 54 years old as well as for male youth aged 15 to 24.  50 000 of these jobs went to part-time work. According to the survey, professional, scientific and technical services, accommodation and food services, health care and social assistance, and natural resources, all increased in employment rate, while utilities did not. The private sector played a major role in this job surge, shifting from the public sector-driven growth in previous months. After four months of little change, private sector employment rose, signaling that businesses are hiring again. Despite this, the unemployment rate still stood at 6.1%, the same in March marking the sixth consecutive monthly decline.

Some suggest that, despite massive economic growth, population growth is just as strong. "Within these numbers is strong employment growth but also still strong population growth," Andrew Grantham, CIBC senior economist, said in a CBC News article. Part-time work is another factor of why unemployment is static despite the job surge. Unemployed workers are usually looking for full-time positions and cannot take part-time work at the risk of having unemployment benefits removed. 

Although employment is on the rise, wage growth has slowed. Hourly wages on average increased to $34.95 in April, a 4.7% increase compared to the previous year. However, this growth rate is lower than the 5.1% in March. These rates can have a big impact on the Bank of Canada as it decides on interest rates over the next months. While increased job growth may imply a stronger economy, the central bank is also mindful of inflation. According to a CBC News article, the Bank of Canada may cut interest rates as inflation shows signs of slowing down, the central bank's governor, Tiff Macklem, told MPs.

Unemployment in Canada has fallen drastically since the pandemic, but there is still lots of systemic work to be done. Canada's April employment surge makes job seekers and unemployed workers hopeful for the future, despite the steady unemployment rate and challenges the economy still faces. Conservative Party leader Pierre Poilievre argues for three major things: to bring home bigger paychecks with lower taxes, lower home prices by ending tax hikes such as the carbon tax, and to make homes affordable to the average Canadian by speeding up building permits.