Canada Continues to have a Record low Unemployment rate
New Delhi: The people planning to settle in the snow-covered country of Canada may change their schedule for the future as in the last July-2022, The government of Canada in July recorded a noticeable unemployment rate in the country. Canada’s unemployment rate held steady at 4.9 percent in July, matching the record low from the month before.
July marks the second consecutive month of decreased employment in Canada. Plus, the record-low unemployment coupled with more than one million job vacancies means Canada is still facing a tight labor market.
The total number of unemployed people held steady at one million in July. In addition, 426,000 people wanted a job but did not look for one and therefore did not meet the definition of unemployed. This was little changed for the sixth consecutive month.
According to the Canada-based economist Carrie Freestone, Two consecutive months of lower employment indicates that the Canadian labor market is running up against capacity constraints, with little room for upside movement. Demand for workers is very high with job postings still 65% above pre-pandemic levels, and there are few unemployed Canadians available to fill these vacant positions.”
The decrease was largely concentrated in Ontario and Quebec. Despite the month-over-month decline, public sector employment was up 5.3% (+215,000) compared to July 2021.
An official from the Canadian Imperial Bank of Commerce – Andrew Grantham said Job losses were strangely concentrated in the services sector, including wholesale and retail, education, and health. With some of those sectors reporting high vacancy rates; labor supply rather than demand appears to be the main issue. The major difference between today’s report and last month is that wage growth unexpectedly decelerated.
(Vinayak)
