Canada's unemployment rate steady as BC's increases to 5.6%

Canada’s unemployment rate has remained steady at 5.8 per cent, according to new data released by Statistics Canada.

The agency said the national economy added 100 jobs in December, with a gain of 23,600 part-time jobs offsetting a loss of 23,500 full-time jobs.

The employment rate, meanwhile, fell by 0.2 percentage points to 61.6 per cent as the population aged 15 and over grew by 74,000.

“The employment rate has trended down in 2023, as population growth generally outpaced employment gains,” StatCan explained.

In British Columbia, the unemployment rate increased by 0.3 percentage points in December, reaching 5.6 per cent.

That’s despite the provincial economy adding 17,700 jobs, pushing the employment rate up to 62 per cent.

StatCan said the increase in the unemployment rate in BC is down to more people looking for work.

BC's jobs minister, Brenda Bailey, said the province had taken “taken important steps” on the economy and but must “keep the momentum going.”

She added: “We know that people and businesses can't go it alone, and we have seen that supporting them is the right approach to continue to strengthen our economy.”

In the Thompson-Okanagan region, the unemployment rate in December 2023 – unadjusted for seasonality – was 3.8 per cent, compared with 4.1 per cent in December 2022.

The employment rate was 54.4 per cent, compared with 59.7 per cent in 2022.

In the Vancouver Island and Coast region, the unemployment rate was 3.8 per cent in 2023, up from three per cent in 2022.

Employment remained steady, however: 57.5 per cent in December 2023 versus 57.4 per cent in December 2022.

Nationally, the economy added 45,700 jobs in professional, scientific and technical services in December.

More jobs – 15,500 – were also added to the healthcare and social assistance sector.

But wholesale and retail lost 20,600 jobs, agriculture lost 17,700 and manufacturing lost 18,300.

Average wages were up 5.4 per cent on a year-over-year basis.

The stagnant jobs market comes after months of interest-rate rises from the Bank of Canada, making borrowing more expensive.

The rate is currently at five per cent. The next rate announcement is set for Jan. 24.