Canada’s Labor Market Takes One Step Forward, Two Steps Back

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After a poor start to the year, the labor market in Canada surprisingly bounced back, adding 37,300 new jobs in January. The headline number is assuredly a good sign after several months of weak employment growth – however there are some details that are potentially concerning. 

First, the majority of growth in the headline number was from an increase in part-time employment (+49k). Full-time employment fell by nearly 12,000 jobs (-11.6k), a concerning signal about the demand for hiring. This could potentially suggest a shift towards less-stable employment conditions, undoing several years’ worth of gains of full-time work. 

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