The increase in jobs was offset by the number of people entering the workforce, primarily through immigration.
The increase in jobs was offset by the number of people entering the workforce, primarily through immigration. This was reflected in the rise in part-time employment; newcomers might not find full-time work right away. But while employers have slowed down on hiring, they are also holding onto their workers, and there have been no widespread layoffs. To keep the unemployment rate constant, the economy needs to add about 50,000 jobs a month given the immigration-driven population growth. September’s numbers are on track to achieve this and are representative of a more balanced job market where employers can find talent when needed. Even as the job market has cooled, though, labour demand remains solid and wage growth has stayed above inflation. The strikes and labour disputes this year have shown that some workers are still demanding raises and getting them. The Bank of Canada expressed concerns this week that companies might keep raising prices to maintain margins while accounting for wage growth. Continued upward price pressures remain a threat. Still, no further rate hikes are expected as the economy cools while workers remain employed: the telltale signs of a soft landing.