Canadian Unemployment Continues to Rise

Emmet McGonagle

Aug 05, 2023

It looks like the Canadian unemployment rise is beginning to plateau, with an estimated loss of  6,400 jobs nationwide in July. (source: Reuters via Statistics Canada).


This marks the third month of stable employment loss in a row at 5.5%, trumping initial predictions from analysts for the  economy to add about 21,100 jobs.


Most of these job losses took place across construction and transportation; but on a brighter note, the health care and educational sectors saw the largest increases at 25,000 and 19,000 new roles, respectively.


Speaking of Canada’s unemployment rate, deputy chief North America economist at Capital Economics Stephen Brown said: “The small fall in employment and rise in the unemployment rate in July show that the labour market continues to loosen, suggesting that the unexpected jump in wage growth last month is unlikely to be sustained. 


“With the Bank of Canada implying that the data need to surprise to the upside to warrant another interest rate hike, the softer labour market data support our view that the Bank is unlikely to follow through with current market pricing by raising rates further."


Alberta, on the other hand, has seen the healthiest growth in employment rates of all the provinces, adding roughly 12,000 jobs across the province. 


And to end on an optimistic note, average hourly wages grew five per cent after similar increases in May and June, marking a positive turn in compensation for workers (source: CBC).


Chief economist at Deloitte Canada Dawn Desjardins told CBC: "We're not looking at a terrible labour market by any stretch.


"Over time you would anticipate that that would lead to slower wage growth, which of course is sort of what the central bank is looking for easing up in those inflation pressures."


Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page.

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By Emmet McGonagle • 01 Dec, 2023
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Workers Call for Pay Transparency

By Emmet McGonagle • 29 Nov, 2023
More than half of workers believe that disclosing worker compensation details on job postings will lead to better equality in pay, according to the latest iteration of LinkedIn’s Workforce Confidence Index . The index - which is based on a survey of 3,302 members in Canada between June and September 2023 - found that 52% of people asked felt that people sharing their pay information (including salary and bonus) would improve workplace equality, compared to 48% in 2022. This number varies between different generations, with younger Canadians more likely to express support for pay transparency (73%), followed by 69% of Millennials, 46% of Gen X and 44% of Baby Boomers. However, 37% of those surveyed remarked that they felt anxious about sharing their pay information - a 2% rise from the year prior. Likewise, just under half (49%) said they felt well compensated for the work they do while 74% expressed that the pay gap between CEOs and employees had become too wide. The people of LinkedIn have come out in their dozens to give their two cents on the topic, with Adrienne Tom , executive resume writer for executives, saying: “ I'm all for salary transparency, so long as the number is clear and legit. Some postings list salary ranges so wide that the actual salary number isn't entirely clear, leaving job seekers confused.” “If you have a manager who is not advocating for the pay gap, you are working for the wrong manager,” remarked career strategist Sweta Regmi , while noting that women in Ontario earn an average of $0.87 for every dollar earned by men. On the topic, she added: “Salary ranges with job postings can help close the gender pay gap while allowing companies to find qualified candidates more quickly.” Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page .
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