May 19, 2024
Of the 398,000 jobs created across the country over the last 12 months, 208,000 (or 52%) have been in the public sector.

Job growth in Canada led by increase in public sector workers

Hiring more and more people to work for the government is unhealthy for our country’s economy

On the face of it, Friday’s jobs report was a good one – we added 90,000 jobs in April and the unemployment rate held steady at 6.1%.

But a deeper look at the numbers give cause to worry on two fronts.

Firstly, and most immediately, the 90,000 job gains and continuing increase in wages could give the Bank of Canada (BoC) pause for concern in lowering interest rates. The BoC’s next scheduled decision on whether to raise, cut or stand firm on the teen setting overnight rate comes on June 5 – a little over three weeks from now.

Several analysts reacted to the hot jobs numbers with concern that the BoC would hold off on cutting rates from the current 5%. The sharp increase in rates over the past two years has exacerbated the housing crisis, increasing costs for average Canadians but also slowing new housing construction at a time when it is desperately needed.

If the BoC holds firm over concerns that inflation isn’t yet fully under control, it could further hurt housing starts and private sector hiring. Which brings us to the next problem in the job report, Canada’s job growth of late has all the stability of a house of cards.

Interesting Read…

See Also:

Trudeau Liberals propose to retroactively hike media grants by another $104M (Paywall)

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