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April jobless rate drops to another new low as economy adds 15K jobs: StatCan – Peace Arch News – Peace Arch News

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Statistics Canada says the jobless rate fell in April to another record low as employment was little changed for the month with a gain of 15,300 jobs.

The unemployment rate came in at 5.2 per cent for April compared with the previous record low of 5.3 per cent set in March.

Bank of Montreal chief economist Doug Porter said the moderate gain in employment is a sign of much more normal conditions, but also one where the supply of new workers may be beginning to be the binding constraint on growth.

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“For the Bank of Canada, this will do nothing to dissuade them from their tightening path, not with headline inflation aiming at seven per cent,” he wrote in a note to clients.

“The one item of news here that may help contain just how much the Bank ultimately needs to hike is the ongoing calmness of wages.”

The jobless rate fell to its lowest point since at least 1976, which is as far back as comparable data goes, as the number of jobs in professional, scientific and technical services rose by 15,000 in April and the public administration category gained 17,000.

The number of people working in retail trade fell by 22,000 in April and those working in construction dropped by 21,000.

Statistics Canada says a number of signs point to an increasingly tight labour market in recent months, including a drop in the number of part-time workers that would prefer full-time work.

The involuntary part-time employment rate fell to its lowest level on record at 15.7 per cent in April.

Average hourly wages were up 3.3 per cent year over year in April compared with a year-over-year gain of 3.4 per cent in March.

Statistics Canada also noted that the proportion of those making less than $20 per hour in April made up 25.9 per cent of all employees, down from 35.5 per cent in April 2019.

Meanwhile, employees earning $40 or more per hour represented 24.5 per cent of employees, up from 18.0 per cent three years earlier.

The effects of the pandemic continued to be felt in the economy as the total hours worked in April fell 1.9 per cent compared with March, due in part to illness-related absences from work. A blizzard in Manitoba also affected the hours worked in that province.

RELATED: ‘It won’t change overnight:’ Workers push back as return-to-office plans roll out

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China Wants Everyone to Trade In Their Old Cars, Fridges to Help Save Its Economy

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China’s world-beating electric vehicle industry, at the heart of growing trade tensions with the US and Europe, is set to receive a big boost from the government’s latest effort to accelerate growth.

That’s one takeaway from what Beijing has revealed about its plan for incentives that will encourage Chinese businesses and households to adopt cleaner technologies. It’s widely expected to be one of this year’s main stimulus programs, though question-marks remain — including how much the government will spend.

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German Business Outlook Hits One-Year High as Economy Heals

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German business sentiment improved to its highest level in a year — reinforcing recent signs that Europe’s largest economy is exiting two years of struggles.

An expectations gauge by the Ifo institute rose to 89.9. in April from a revised 87.7 the previous month. That exceeds the 88.9 median forecast in a Bloomberg survey. A measure of current conditions also advanced.

“Sentiment has improved at companies in Germany,” Ifo President Clemens Fuest said. “Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.”

A stronger global economy and the prospect of looser monetary policy in the euro zone are helping drag Germany out of the malaise that set in following Russia’s attack on Ukraine. European Central Bank President Christine Lagarde said last week that the country may have “turned the corner,” while Chancellor Olaf Scholz has also expressed optimism, citing record employment and retreating inflation.

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There’s been a particular shift in the data in recent weeks, with the Bundesbank now estimating that output rose in the first quarter, having only a month ago foreseen a contraction that would have ushered in a first recession since the pandemic.

Even so, the start of the year “didn’t go great,” according to Fuest.

“What we’re seeing at the moment confirms the forecasts, which are saying that growth will be weak in Germany, but at least it won’t be negative,” he told Bloomberg Television. “So this is the stabilization we expected. It’s not a complete recovery. But at least it’s a start.”

Monthly purchasing managers’ surveys for April brought more cheer this week as Germany returned to expansion for the first time since June 2023. Weak spots remain, however — notably in industry, which is still mired in a slump that’s being offset by a surge in services activity.

“We see an improving worldwide economy,” Fuest said. “But this doesn’t seem to reach German manufacturing, which is puzzling in a way.”

Germany, which was the only Group of Seven economy to shrink last year and has been weighing on the wider region, helped private-sector output in the 20-nation euro area strengthen this month, S&P Global said.

–With assistance from Joel Rinneby, Kristian Siedenburg and Francine Lacqua.

(Updates with more comments from Fuest starting in sixth paragraph.)

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Parallel economy: How Russia is defying the West’s boycott

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When Moscow resident Zoya, 62, was planning a trip to Italy to visit her daughter last August, she saw the perfect opportunity to buy the Apple Watch she had long dreamed of owning.

Officially, Apple does not sell its products in Russia.

The California-based tech giant was one of the first companies to announce it would exit the country in response to Russian President Vladimir Putin’s full-scale invasion of Ukraine on February 24, 2022.

But the week before her trip, Zoya made a surprise discovery while browsing Yandex.Market, one of several Russian answers to Amazon, where she regularly shops.

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Not only was the Apple Watch available for sale on the website, it was cheaper than in Italy.

Zoya bought the watch without a moment’s delay.

The serial code on the watch that was delivered to her home confirmed that it was manufactured by Apple in 2022 and intended for sale in the United States.

“In the store, they explained to me that these are genuine Apple products entering Russia through parallel imports,” Zoya, who asked to be only referred to by her first name, told Al Jazeera.

“I thought it was much easier to buy online than searching for a store in an unfamiliar country.”

Nearly 1,400 companies, including many of the most internationally recognisable brands, have since February 2022 announced that they would cease or dial back their operations in Russia in protest of Moscow’s military aggression against Ukraine.

But two years after the invasion, many of these companies’ products are still widely sold in Russia, in many cases in violation of Western-led sanctions, a months-long investigation by Al Jazeera has found.

Aided by the Russian government’s legalisation of parallel imports, Russian businesses have established a network of alternative supply chains to import restricted goods through third countries.

The companies that make the products have been either unwilling or unable to clamp down on these unofficial distribution networks.

 

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