(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

A drawing of the proposed Harris Road overpass in Pitt Meadows.
Pitt Meadows residents invited to road and rail project updates

Results of noise and vibration study will be made public

Amiri is currently working as a parliamentary intern. (Christian Diotte - Special to The News)
Maple Ridge woman earns scholarship to study law in Montreal

Somaya Amiri, 23, awarded McCall MacBain scholarship at McGill University

Bat Packs are the newest addition to the FVRL Playground, and have everything you need to learn more about bats, and track them in your neighbourhood. (FVRL image)
Bat Packs at Fraser Valley libraries come with echometer to track bats

Packs are the newest part of the FVRL Playground inventory

Online guide expected to make applying for building permits easier. (The News files)
City of Maple Ridge launches new building permit application tool

Users can print or save their results for easy access

Dogs big and small on the patio at Witchcraft Beer Market and Bistro. (City of Maple Ridge/Youtube)
VIDEO: Maple Ridge businesses embrace new dog friendly pilot project

Pets can come onto a patio at a restaurant or enter participating retail spaces

Demonstrators at the legislature on April 14 called on the province to decriminalize drug possession and provide widespread access to regulated safe supply across B.C. (Jake Romphf/News Staff)
Rally calls for decriminalization, safe supply on 5th anniversary of overdose emergency declaration

From 2016 to the end of February, 7,072 British Columbians died due to overdose

Surrey RCMP are seeking the public's help to locate three puppies stolen from a South Surrey home on April 10. (Surrey RCMP photos)
UPDATE: 1 of 3 puppies stolen from South Surrey returned to owner

American Bulldog puppy recovered after being sold at Mission car show

Two women walk past ‘The Meeting’ sculptures in White Rock’s Miramar Plaza Wednesday afternoon. (Aaron Hinks photo)
New public art in White Rock faces criticism as the ‘two Michaels’ remain in China’s custody

‘I would encourage people to go out and enjoy it’ said Vancouver Biennale founder

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Feb. 1, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps to 1,168 Wednesday, nearly 400 in hospital

Now 120 coronavirus patients in intensive care, six more deaths

Moss covered branches are seen in the Avatar Old Growth Forest near Port Renfrew on Vancouver Island, B.C. Thursday, Sept. 29, 2011. THE CANADIAN PRESS/Jonathan Hayward
B.C. blockades aimed at protecting old-growth forests reveal First Nation split

Two Pacheedaht chiefs say they’re ‘concerned about the increasing polarization over forestry activities’ in the territory

Everett Cummings in a tribute video posted to dignitymemorial.com.
Mechanic’s death at Fraser Surrey Docks leads to $200K fine for company, union says

Photos of rally outside Surrey court posted on ILWU’s ‘Kill A Worker Go To Jail’ Facebook page

Most Read