Western Alberta unemployment rate increases to 5.9 per cent

Western Alberta unemployment rate increases to 5.9 per cent

Futures are pricing in a six per cent probability of a rate cut at the central bank's meeting October 30, compared with about 22 per cent at the start of the week.

The national statistics office says Canada's unemployment rate nudged down to 5.5 per cent in September as the economy added 54,000 net new jobs, driven by gains in full-time work.

The unemployment rate hovered around 8.3 per cent, bumping up half a percentage point from September of past year.

From a broader perspective, though, B.C. has posted gains of 33,400 jobs when September 2019 is compared with the September 2018 numbers.

The economy added 53,700 jobs last month, Statistics Canada said, following a gain of 81,100 in August.

However, much of the employment growth was concentrated in Ontario, where employment rose by 41,000 in September - mostly in full-time work.

The unemployment rate in western Alberta increased for the month of September.

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There are 456,000 more jobs in Canada than a year ago, bringing employment up 2.4 per cent.

Even though year-over-year private sector jobs were up, the month-over-month numbers for private-sector employment were down by 21,000.

On the plus side, not only is employment growing, but so are wages. "Growth is still quite modest in this country, so we're not getting a whole lot of payback from those strong job gains", Porter said.

"Jobs have been running too hot relative to growth trends - it is likely the replacement of capital for labour is occurring", Ian Pollick, head of North American rates strategy at Canadian Imperial Bank of Commerce, said in a research note Friday.

Chief Economist and Managing Director of Economics Douglas Porter with the Bank of Montreal wrote that strong employment is not translating into strong spending and/or output gains.

But he warned that economists will keep an eye towards any data over the rest of the year suggesting a global slowdown is lapping up on Canada's economic shores. The province's unemployment rate now matches Quebec's as the lowest in the country.

Stanford, the Harold Innis Industry Professor of Economics at McMaster University, wrote that federal income-support programs like the Canada Child Benefit among other measures have contributed to the labour market performance.

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