Unemployment rate reaches new record low in Canada

Ottawa: The unemployment rate in Canada edged down 0.1 percentage point to 5.1 per cent in May, marking three consecutive months of decrease while this key labor market indicator has reached a new record low, Statistics Canada said. The tightening labor market in recent months has contributed to year-over-year decline in unemployment rates across the core-aged […]

Ottawa: The unemployment rate in Canada edged down 0.1 percentage point to 5.1 per cent in May, marking three consecutive months of decrease while this key labor market indicator has reached a new record low, Statistics Canada said.

The tightening labor market in recent months has contributed to year-over-year decline in unemployment rates across the core-aged population, the national statistical agency added on Friday.

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The adjusted unemployment rate, which includes those who wanted a job but did not look for one, fell 0.2 percentage point to 7 per cent in May, the lowest rate on record since comparable data became available in 1976, Xinhua news agency reported.

According to a related survey, the ratio of unemployed people to job vacancies reached an all-time low of 1.2 in March, highlighting labor supply pressures facing employers seeking to attract and retain employees.

Meanwhile, employment rose by 40,000, or 0.2 per cent, driven by gains in full-time work among young and core-aged women, the agency said.

Total hours worked were little changed in May, but were up 5.1 per cent compared with 12 months earlier and average hourly wages increased 3.9 per cent to 31.12 Canadian dollars ($24.9) on a year-over-year basis, according to Statistics Canada.