Ottawa-Gatineau’s unemployment rate rose for the first time in four months in February as job gains failed to keep pace with population growth, Statistics Canada said.
The federal agency’s labour force survey released Friday says the region’s unemployment rate was 4.7 per cent last month, up from 4.6 per cent in January.
Local employers created a net 1,200 new jobs in February, while the total labour force grew by 2,200 people.
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Job gains in key sectors such as public administration, which saw a net increase of 4,600 positions, were offset by declines in other major industries such as tech, which shed 2,800 jobs.
Statistics Canada has been putting more emphasis on the employment rate in its reports recently to capture whether job gains are keeping up with population growth.
The federal agency notes in Friday’s report that the employment rate – which represents the proportion of Canadians aged 15 years and older who are employed – fell for a fifth consecutive month in February.
That’s the longest period of consecutive decreases since the six-month period ending in April 2009.
In Ottawa-Gatineau, the rate fell from 65.9 per cent in January to 65.8 per cent last month.
The Canadian economy as a whole added 41,000 jobs in February as employment gains continue to lag strong population growth in the country.
Statistics Canada says the national unemployment rate ticked up to 5.8 per cent last month.
Job gains, which were driven by full-time employment, were spread across several industries in the services-producing sector. The strongest employment growth in accommodation and food services.
High interest rates are putting a drag on the economy as consumers pull back spending, causing a slowdown in sales for businesses. But strong population growth appears to be offsetting some of those effects, including in the labour market.
“Today’s report is certainly impressive at first blush, particularly the towering rise in full-time jobs,” wrote BMO chief economist Douglas Porter in a client note.
“However, it’s staggeringly clear that the results are flattened by ongoing massive population gains, and the labour market is thus actually gradually cooling.”
High population growth has added more consumers and workers to the economy, allowing for ongoing job gains in the country.
But other measures of employment paint a weaker picture of the labour market.
Statistics Canada has been putting more emphasis on the employment rate in its reports recently to capture whether job gains are keeping up with population growth.
The federal agency notes in Friday’s report that the employment rate – which represents the proportion of Canadians aged 15 years and older who are employed – fell for a fifth consecutive month in February.
Meanwhile, wages continue to grow rapidly in Canada. Average hourly wages were up five per cent from a year ago, down from a rate of 5.3 per cent in January.
– With additional reporting from the Canadian Press
