Hiring in Canada Surged in January Despite Tariff Threat

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Statistics Canada said Friday that employment increased by 76,000 in January, which reduced the unemployment rate to 0.1 percent points to 6.6 percent. In the Bloomberg survey, economists were expecting the unemployment rate to increase by 6.8 % to 25,000 jobs.

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The Canadian economy is increasing jobs more than November. In the last three months, there were a total of 211,000 positions in the pursuit of employment, which increases both full -time and part -time work. This is the biggest benefit in the three months since early 2023.

But clear jobs cannot stop the Bank of Canada from decreasing interest rates this year. The recent wave of services will not be enough to reduce the concerns that Canada’s potential trade war can put the economy in recession. Nevertheless, traders reduced the expectations of cuts at the March 12 meeting overnight, which had been reduced from 80 % to 60 % before.

The data was released at the same time as the US Nanfaram Paul, which increased by 143,000 in January as the unemployment rate was 4 %. By 9am in Ottawa, Loni changed the day’s loss against the US dollar. Canada’s two -year production increased by about seven -point points to 2.65 percent of the session, in which Canadian loans reduced the US and developed markets.

Policy makers have reduced the rate of cuts and indicates that they do not believe in the future of softening in the future due to the uncertainty of President Donald Trump’s plans. Economists expect unemployment to increase during tariff war, which has now stopped next month. Citing tariff risks, some Canadian companies have already announced a job deduction.

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In January, the increase in employment was led by manufacturing, a sector in which most jobs depend on the US demand for Canadian exports and accounts for 8.9 % of Canada’s total job. An estimated 641,000 jobs in this sector, or about 40 %, depend on the ability to export goods to the United States.

Professional services, construction and housing and food services also increased jobs.

“The report confirms that the labor market has been solid in recent months, and it is far more speed than being thought. However, the question is how fast the uncertainty may increase due to the risk of prices.

Andrew Grantham, a Canadian Economist, told investors in a report that the figures were “clearly” very positive.

“However, even after the improvement in the last two months, the unemployment rate was still standing in October, and is still in accordance with a labor market that has a lot of slowdown,” he said. “We keep thinking that the economy will also need low interest rates to fully absorb this slack, especially in view of the commercial uncertainty that affects the decisions of the next services. May. “

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Benjamin rates, rates and macro -strategists at the Bank of Montreal see the growing evidence that the central bank should hold the rates next month. “Unless we get revenues, or there is no clear sign that the risk of rates is putting hammers in a hammer, or the data falls from a mountain next month, march I am preparing for the Bank of Canada’s stay. ” Email.

Inflation is 2 % with the target and the cooling of wages rise, the good news is that there is some flexibility to respond to central bankers if a shock is hit by the economy, Managing Director of Rates in Disposal Securities Securities And the macro strategy told investors.

“Manufacturing jobs have led the way to the path, which can potentially be linked to the storage of inventives to US buyers, but it is difficult to confirm the assumption,” he said.

The unemployment rate in January was a monthly decline of 6.9 percent from the current peak in November. The total number of unemployed people was changed slightly by 1.5 million. Among those who were unemployed in December were 65.4 % unemployed in January, while 61.7 % of the year ago. This shows that Canadian residents are facing more difficulties in searching for jobs, despite the recent increase in employment.

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The proportion of the job rate-wing age population, which is in job-increased to 0.1 % points in January 61.1 %. This is the third straight monthly increase, a significant difference between April 2023 and October 2024, when the job rate decreased by 1.7 percent points when the population growth increased.

Regional, employment increased in Ontario, British Columbia and New Burnsco. In other provinces it changed a bit.

Annual wages for permanent employees have reduced the annual wage by 3.7 %, with expert economists less than 3.8 % and up to 3.8 % revised in December.

Last month, the total hours increased by 0.9 %, which also started on a strong basis this year.

With the help of ER Eric Hertzberg and Carter Johnson.

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