B.C.’s Job Boost
In August, British Columbia (B.C.) played a big part in Canada’s job market by adding 12,000 new jobs, as per Statistics Canada. This helped Canada gain 40,000 jobs in total.
Leading Alberta
Alberta led the way with 18,000 new jobs, but Ontario lost 9,000 jobs, which was a setback.
B.C.’s Lower Unemployment
British Columbia had good news with its unemployment rate dropping to 5.2%, down 0.2% from the previous month. Canada’s rate stayed at 5.5%.
Real Estate Job Loss
Sadly, British Columbia’s finance, insurance, real estate, rental, and leasing sector lost 7,700 jobs. High interest rates impacted the real estate market.
Education Sector Growth
On a brighter note, British Columbia added 10,200 jobs in the education sector as the school year approached.
Job Market Insights
BMO’s chief economist, Douglas Porter, noted Canada’s job market has been up and down this year. He stressed the need for a steady flow of new jobs to keep up with the growing population. About 50,000 new jobs are needed each month to maintain the current unemployment rate.
Porter also mentioned that while August’s job data is important, it may not right away affect the Bank of Canada’s recent decision to pause rate hikes. He thinks the data isn’t strong enough for an immediate change but not weak enough to rule out future rate hikes.
Economic Views
TD’s senior economist, James Orlando, talked about the impact of recent interest rate hikes on spending and the real estate market. He said market participants are still waiting for more evidence of an economic slowdown, as shown by the 50-50 chance of another rate hike this year.
In contrast, CIBC’s executive director of economics, Andrew Grantham, said the Bank of Canada might stop rate hikes for now. He explained that the unemployment rate might go up in the coming months, which could slow wage growth and inflation.
In conclusion, B.C.’s job market was strong in August, but there are challenges in the real estate sector, and uncertainty about future rate hikes remains important in the Canadian economy.
Please contact Jared Gibbons, your local realtor, should you have any questions!