The unemployment rate increased slightly to 5.8% in Canada in November, despite the creation of 25,000 jobs. In Quebec, the unemployment rate increased from 4.9% to 5.2%.
Population growth continues to outpace employment growth, says Statistics Canada. This is the second consecutive increase in the unemployment rate and part of the increase is due to layoffs, reflecting more difficult conditions in the job market.
Employment is growing at a modest pace, i.e. 25,000 in November, which is still higher than the previous month when 17,500 jobs were added. Job creation in November also beat economists’ forecasts, which expected a meager increase of 10,000 jobs.
There were more jobs in November in manufacturing and construction, but fewer in wholesale and retail trade. Total hours worked were down in November, but still up 1.3% from a year earlier.
Average hourly wages continue to rise, with November’s 4.8% increase similar to October’s.
Quebec, which lost 22,100 jobs in October, did not add any jobs in November. The unemployment rate, which increased from 4.9% to 5.2%, is now 1.3% higher than its historic low of 3.9% recorded in January 2023.
In the Montreal metropolitan area, the unemployment rate reached 5.7%. Quebec City has the lowest unemployment rate in Canada, at 2.7%, and Windsor, Ontario has the highest unemployment rate, at 7.6%. In the Toronto metropolitan area, the unemployment rate is 6.6%.
In Canada, the unemployment rate increased by 0.1 percentage point to 5.8%. The upward trend in the unemployment rate in Canada dates back to April. Since last April, the unemployment rate has increased by 0.8 percentage points.
According to Statistics Canada, the increase in the unemployment rate affects all age groups, but young people aged 15 to 24 are particularly affected. From April to November, the youth unemployment rate increased by 2%, to 11.6%.
