The job market is still not showing any sign of weakness, with 150,000 jobs created in January and the unemployment rate holding steady at 5% in Canada.
Job creation also remained strong in Quebec, with 47,000 more jobs. The unemployment rate fell back below 4%, to 3.9%. This is the lowest rate of all the provinces.
Employment is up in Quebec for a third consecutive month. In the Montreal metropolitan area, employment was little changed and the unemployment rate remained stable at 4.6% in January.
While most observers were expecting a marked drop or slowdown in job creation, the labor market continues to surprise in Canada and the United States.
In Canada in January, new jobs were listed in retail trade, health care and educational services. Employment fell in the transportation and warehousing sector. Employment increased in both the private and public sectors.
Other labor market indicators monitored by the Bank of Canada are also positive, according to Statistics Canada. Total hours worked rose 0.8% in January and are up 5.6% year over year.
The average salary continues to increase, although at a slower pace. The increase was 4.5% in January, compared to 4.8% in December. The size of the labor force continues to grow, as 153,000 more people entered the labor market in January, pushing the participation rate up 0.3 percentage points to 65.7% .
In Canada, the unemployment rate of 5% in January is very close to its record low of 4.9% observed in the summer of 2022. There were one million unemployed in Canada in January, the same number as in summer 2022.