Canada posts massive job gains in September as employment back to pre-pandemic level

by   |  VIEW 530

Canada posts massive job gains in September as employment back to pre-pandemic level

On Friday, data from Statistics Canada had unmasked that the Canadian economy, the ninth-largest across the globe by nominal GDP (Gross Domestic Product) and the fifteenth-largest by PPP (Purchasing Power Parity), had created a decent number of jobs in September, as employment roared back to a pre-pandemic level with unemployment rate plunging to a fresh 18-month low, suggesting a brightening up of outlook over coming months as delta cases ebbed and a longer-than-anticipated supply chain constrain seems to be waning.

In the latest flashpoint of an upbeat labour market activity in Canada, a riant employment data released earlier in the day came against the backdrop of a US labour market which has been gaining tractions lately despite missing September nonfarm payrolls estimate, as layoffs had dipped sharply and hourly wages rose to 0.6 per cent compared to a 0.4 per cent a month earlier.

Aside from that, data from Statistics Russia also had reported last month that the nation’s employment had reached a pre-pandemic level, however, leading EU economies had still been scuffling amid a lingering worker shortage with UK facing off a cataclysmic worker shortage which could potentially hinder economic activities during an all-important holiday season ahead.

Canada’s employment pushes back to pre-pandemic levels

According to data from Statistics Canada, the N. American G20 economy had added 157,100 new full-time jobs in September with unemployment rate retreating to 6.9 per cent, the lowest since a pre-pandemic peak reached on February 2020, beating an analysts’ estimate of jobless rate of 7.1 per cent.

Meanwhile, expressing an out-and-out optimism over Canada’s latest labour market reading, a chief economist at Desjardins Group, Jimmy Jean said, “It's very solid and shows that Canada is doing well in that fourth wave.

However, the BoC (Bank of Canada) would likely to take a more cautious approach before fostering an aggressive stance on hiking its benchmark borrowing costs, suggested analysts.