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The unemployment rate in Canada has reached an all-time low

The unemployment rate in Canada has reached historic low levels. However, will the market maintain this trend? Read this article and understand.

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The current state of the labor market in Canada

Stick men shaking hands (the unemployment rate in Canada)
“Hired!” Understand why this expression has become so common in recent months in Canada. Source: Pixabay

In fact, in Canada, there are many jobs and companies in the country are willing to pay more to have employees. In fact, that’s what the unemployment rate in Canada revealed.

After a major shock that generated a movement of mass layoffs during the pandemic, Canada is experiencing a historic moment. Since unemployment began to be measured, this rate has never been lower.

Despite the large volume of hiring in recent months, there are still vacancies. Lots of idle spaces. Next, understand what is happening with the unemployment rate in Canada and what you can expect for the future of the country.

Hand holding hose for fueling car

Inflation rate in Canada has the highest increase in almost 40 years

Inflation rate in Canada reached historic levels. Understand what is behind this movement and what to expect in the coming months.

What is the current unemployment rate in Canada?

Office with people working
The country has never had so many people working with so many job openings. Source: Flickr

According to Statistics Canada, the unemployment rate dropped once again in the month of June. In fact, this is the fifth consecutive month that we have fewer people looking for a job available.

In June, the unemployment rate in Canada registered a percentage of 4.9%. Thus, this value hit the historic record of last month, when the indicator reached 5.1%.

In fact, this is the lowest percentage since 1976, when the indicator began to be released. Furthermore, the reduction in unemployment was felt in all strata of the population.

However, the most benefited portion were adults between 25 and 54 years old. In May of this year, in this age group, this rate was 4.3%. Emigrants were also greatly benefited.

In this population, the unemployment rate in May was 5.5% in April. Also, many people have traded part-time work for a full-time job. While part-time jobs declined by 2.9%, full-time jobs increased by 0.9%.

Despite all the wave of contracts, companies are still looking for employees. Today, there are at least 800,000 vacancies in the country.

Canadian flag with dollar sign

Is Canada going into recession? Here's what experts are saying

Find out if Canada is going into recession, and learn about some of the causes behind this situation. Here are the facts.

What are the main factors that influence the Canadian employment rate?

Indeed, experts were counting on unemployment to fall as the economy got back on its feet.

However, few analysts expected the country’s recovery to be so fast and intense. In just over a year, the number of unemployed dropped from approximately 13.5% to 4.9%.

Many attribute this movement to the high price of commodities. The high value of these inputs in the international market “turned on” the engines of the market as a whole in the country.

After all, Canada is a major exporter of these goods. In addition, another important factor was the high consumption pattern of Canadian families shortly after the reopening of the economy.

Apparently, the uncertainty about the future made people take the first opportunity to travel and consume services as before.

This whole scenario gave companies hope and they decided to invest more boldly.

What can we expect for the future of the economy in the country?

empty meeting room
Does everything good last a short time? Understand what will happen to Canada jobs soon. Source: Flickr

However, this movement should not last much longer. As wages rise, inflation also rises.

This movement, combined with the increase in interest rates by the National Bank, tends to “cool” the market. Thus, wages and the level of unemployment tend to balance out in the short and medium-term.

In this way, what we have left is to take advantage of the opportunities and show that we are indispensable for companies.

In fact, employment is just one of the factors that are moving the economic debate in the country. For an overview, click on the link below and understand today’s key economic facts:

canada flag flying in the middle of the mountains

The economy in Canada: where we are, where we're going

Understand what experts say about the economy in Canada. Will we have a recession in the future? Click here and discover this and much more.

About the author  /  José Gonçalo

I started reading about finance only to find better options than savings. Since then, I have never stopped studying finance, and I believe that writing about it is the best way to help individuals feel fulfilled and have a healthy financial life. Today, I balance finance and medical school studies.

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