Canada's jobless rate dropped to 5.8 per cent in January as the economy created 46,000 new positions, reports .
The jobless rate, which eased from six per cent in December, matched a 33-year-low achieved last October.
The additional 46,000 jobs helped boost the employment rate of working-age Canadians to a new record of 63.8 per cent.
The employment growth was "wholly attributable" to an increase in full time positions. In the past year, full-time work has grown at nearly double the rate of part time, says the report.
Wage growth also remained strong last month, with a year-over-year increase in average hourly wages estimated at 4.9 per cent. The rise was well above the most recent increase of 2.4 per cent in consumer prices.
BMO economist Douglas Porter said Friday that the data adds weight to the view that the Canadian economy is doing better than its U.S. counterpart.
Porter said it also creates doubts about whether the Bank of Canada will slice interest rates in the near future.
Last month, in a widely expected move, the central bank lowered its target for the overnight rate to 4 per cent.
At the time, the central bank suggested "further monetary stimulus" would likely be required in the near term.
"At the end of the day, the jobless rate is at a cycle low and wage growth is at a cycle high, so where's the urgency to cut rates?'' said Porter.
Newfoundland and Labrador, Alberta and British Columbia all had record employment rates in January. In Quebec, the jobless rate fell to a 33-year-low of 6.8 per cent while in Ontario it fell to 6.3 per cent.
Over the past 12 months, the report shows employment growth was the strongest in:
- Construction
- Professional, scientific and technical services
- Public administration
- Transportation and warehousing
Overall employment gains were tempered by declines in information, culture and recreation sectors as well as in retail and wholesale trade, says the report.
