BC’s unemployment rate slips lower than Alberta’s for first time in decades

The city’s unemployment rate declined slightly month-over-month but remained significantly higher than at the same time previous year, according to Statistics Canada labour market survey numbers for September released Friday. At the same time, private sector employment rose by 10.1K positions.

Of course, we can’t be complacent; the loss of a few full-time jobs and a rise in part-time employment in the past year show the Saskatchewan economy is also feeling the impact of the energy downturn.

Despite this strength, B.C.’s unemployment rate increased from 6.0% in August to 6.3%, due to a higher population and an increased participation rate, while Alberta’s unemployment rate grew from 6.0% to 6.5%. There were also sharp declines in manufacturing employment in Newfoundland and Labrador and New Brunswick, which saw employment fall by 16.7 per cent and 5.0 per cent, respectively.

The information, culture and recreation sector added 33,000 jobs last month, while the “other services” group added 22,000 jobs.

Canada was in a mild recession in the first half of 2015, but economists and policymakers expect growth resumed in the third quarter, a view that is supported by recent data.

The number of part-time jobs increased by 74,000 in September, but full-time employment fell by 62,000.

With the Federal Reserve expected to begin raising its policy interest rate early next year, financial conditions in Canada will tighten, further reducing any impetus for a rate increase.

From the Bank of Canada’s perspective, there was little in today’s report that is likely to change their thinking.

The nationwide employment gain was a net 12,100 jobs, entirely due to a surge in part-time work as 61,900 full-time positions were lost. Canada has relied on cheap borrowing costs and a weaker currency to offset the impact of lower oil prices.