Québec is experiencing a new low record of unemployment

Photo: Jeff Pachoud Agence France-Presse
The creation of employment is mostly concentrated in the services sector professional, scientific and technical.

Unemployment in Quebec was already at its lowest level since, as far as one could go back in time and it fell further in December.


The addition of almost 27 000 jobs, the large majority full-time (more than 19,000), has contributed to reducing the unemployment rate from 5.4 % to 4.9 % in the month of December in Quebec, reported Friday by Statistics Canada. This measure lowers a little more in a brand that, previously, had never been as low since comparable data are available, there are more than 40 years, in January 1976.


She completes a year that had started with an unemployment rate of 6.5% in December 2016 and has seen, subsequently, the quebec economy to create 87 000 jobs (+2.1 percent), almost all full-time. This increase was mostly concentrated in the services sector, in particular in the industry of the finance, insurance and real estate (+18 000), professional, scientific and technical (+16 000) and educational services (+13 000), said Friday the Institut de la statistique du Québec. The accommodation industry and catering, it, to decline (-12 000).


The year of all records in Canada


Canada has not done very well either. In addition to the Quebec, Alberta has also enjoyed strong employment growth in December, whereas all the other provinces also registered gains, for a total of approximately 79 000 jobs, mainly part-time. This performance has confounded forecasters, who had been expecting a pullback after twelve months of consecutive wins. Instead, they saw the unemployment rate in Canada to decline from 5.9 % to 5.7 %, which is, as for Quebec, a historic low.


More than 193 000 jobs were added to the canadian economy over the last three months, which is the best quarter since 2010. In 12 months, he has added 423 000 jobs (+2.3 percent), the highest employment growth from December to December since 2002. The bulk of these gains were the result of full-time employment, while part-time employment has remained relatively stable. It was especially found in the manufacturing sectors (+86 000) and construction (+51 000), as well as on the side of transport services (+57 000), finance, insurance and real estate (+53 000), as well as professional services, scientific and technical (+53 000). A lot of workers 55 and over have benefited from this increase (+203 000), but the 25-54 age group have also done well (+186 000).


Higher wages and interest rates


Other good news is that, “this improvement in the labour market leads to an acceleration of wage growth,” observes Benoit P. Durocher, senior economist at Desjardins group. The annual change in the average hourly wage is, in fact, recently rising to nearly 3 %, ” he recalls, which comes to confirm the trends reported by surveys of businesses on their average weekly earnings.


These new statistics should produce a certain effect on the Bank of Canada, writes the economist. “These excellent results raise the debate about the precise timing of the next increase of interest rates in Canada. The probability of that is in January rather than in march, have just increased a notch. “


The canadian central bank has raised the rate of its main tool of monetary intervention on two occasions in July and September of last year, but has left since to 1 %.

Job creation has weakened in December in the United States

The creation of employment in the United States has lost steam in December, disappointing expectations, but the unemployment rate at 4.1 % remained at its lowest level since 17 years old, in full economic upswing. According to the official report on the employment of the department of Labor released Friday, the economy created 148 000 new jobs last month, while analysts expected 188 000 net hires. On 2017, in the course of the first year of Donald Trump, the world’s first global economy has created 2.1 million jobs, after a gain of $ 2.2 million in 2016.