(Canadian Press)

(Canadian Press)

Surge in job growth drives unemployment rate down to new 40-year low

The November employment surge was fuelled by the addition of 89,900 full-time positions

A blast of 94,100 new jobs last month has knocked the country’s unemployment rate down to 5.6 per cent — its lowest level since Statistics Canada started measuring comparable data more than 40 years ago.

The overall number marked the labour force survey’s largest monthly increase since March 2012 when there was a gain of 94,000 jobs, Statistics Canada said Friday.

READ MORE: B.C. budget surplus expected to keep growing

The November employment surge was fuelled by the addition of 89,900 full-time positions. For employee work, the private sector added 78,600 positions in November, while the public sector gained 8,300 jobs.

Last month’s increase pushed the jobless rate down from October’s reading of 5.8 per cent, which had been the previous low mark since comparable data first became available in 1976. The old statistical approach — prior to 1976 — registered an unemployment rate reading of 5.4 per cent in 1974.

But Friday’s report also contained disappointing details.

Year-over-year average hourly wage growth for permanent employees continued its decline in November to 1.46 per cent — to deliver its weakest reading since July 2017.

Experts have been expecting wage growth to rise thanks to the tightened labour market, but it has dropped every month since its May peak of 3.9 per cent. It now sits well below inflation.

READ MORE: Bank of Canada holds interest rate at 1.75%

The Bank of Canada keeps a close watch on wages ahead of its interest-rate decisions. On Wednesday, the central bank held its benchmark rate at 1.75 per cent, but in explaining its decision it highlighted other economic negatives such as weaker-than-expected business investment and the sharp drop in oil prices.

Royce Mendes of CIBC Economics said the Bank of Canada will take notice of the “massive reading” in the November jobs report as it mulls next month’s rate decision.

“The large gain in jobs will keep a January rate hike on the table for now, but we’ll need to see similarly positive evidence from other indicators and no major reversal in the next jobs report,” Mendes wrote in a research note to clients Friday.

Statistics Canada’s report Friday also said that, compared to 12 months earlier, employment was up 1.2 per cent following a net increase of 218,800 jobs. The addition of 227,400 full-time positions offset a small decrease in part-time work.

The November jobs report showed the goods-producing sector added 26,900 jobs following a notable gain of 14,800 construction positions. The services sector generated 67,200 jobs last month with help from the addition of 26,000 positions in professional, scientific and technical services.

By region, employment rose in six provinces and was led by gains in Quebec and Alberta.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19. (Image courtesy CDC)
Interior Health reports 70 new cases overnight

The total number of cases in the region is now at 1,426

It’s important to be sure how to use your equipment appropriately when in the backcountry. (File photo)
Backcountry Safe seeks to start safety dialogue

The group is hoping that people will learn from their mistakes

Masks are now mandatory in public places in B.C. under new provincial public gathering restrictions. (Claire Palmer photo)
Physicians of Golden support mask mandate

Dr. Larsen Soles says that there is still time to get the rising numbers under control

The process to bring a community forest to Golden is still ongoing. (File photo)
Local group works to bring community forest to Golden

The group will be working in cooperation with local First Nations groups

Business district is pictured during a traffic jam in Jakarta, Indonesia, June 20, 2019. REUTERS/Willy Kurniawan
Morning Start: By 2050, 95 percent of North Jakarta could be submerged

Your morning start for Wednesday, Nov. 25, 2020

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

Central Okanagan Public Schools administration office in Kelowna. (File photo)
COVID-19 confirmed in 5 more Central Okanagan schools

All people who tested positive for the virus are self isolating at home

Penticton Law Courts
Bail hearing for Penticton man charged with sex assault, forcible confinement

Robert Sauve is facing more than 10 criminal charges

The COVID-19 test centre at Peace Arch Hospital is located on the building’s south side. (Tracy Holmes photo)
B.C. woman calls for consistency in COVID-19 post-test messaging

‘Could we just get one thing straight?’ asks Surrey’s Deb Antifaev

Revelstoke RCMP warn of scam after two people targeted in one day. (Black Press file photo)
Revelstoke RCMP warn of scammer pulling at heart strings

Two people in Revelstoke targeted in one day by person posing as a loved one

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

RCMP. (Phil McLachlan - Black Press Media)
RCMP investigate suspected arson at Shuswap hunting camp

Suspicious fire took place by Scotch Creek forest service road on Oct. 24

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

St. James Anglican Church, Armstrong, B.C. (Google Maps).
Prayer at North Okanagan council meetings a violation of religious neutrality: study

New study found 23 municipalities held prayer sessions at inaugural meetings in 2018, in violation of a Supreme Court decision

Most Read