Canadian Economy Adds 41,000 Jobs in February Amid Population Growth

The Canadian economy saw a surge in employment, adding 41,000 jobs in February, although the unemployment rate edged up to 5.8 percent, according to the latest labour force survey released by Statistics Canada on Friday.

Job gains were notable across various industries within the services-producing sector, with accommodation and food services showing particularly strong growth.

Despite robust job creation, high interest rates are dampening economic activity as consumers rein in spending, leading to a slowdown in business sales. However, the impact of strong population growth appears to be mitigating some of these effects, particularly in bolstering the labour market.

Canada’s rapid population growth has contributed to an increase in consumers and workers, sustaining ongoing job gains in the country. However, certain indicators of employment present a less optimistic outlook.

Statistics Canada is now placing greater emphasis on the employment rate, reflecting whether job growth is keeping pace with population expansion. The report highlights a concerning trend, noting that the employment rate declined for a fifth consecutive month in February, marking the longest stretch of consecutive decreases since April 2009.

Amidst these fluctuations, wages in Canada continue to rise at a brisk pace. Average hourly wages registered a five percent increase compared to the previous year, though slightly lower than the 5.3 percent growth recorded in January.