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Canada added 150,000 jobs in January

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OTTAWA – The Canadian labour market is showing no signs of slowing despite forecasters expecting high interest rates to weigh on jobs numbers.

Statistics Canada’s latest labour force survey released Friday showed that the economy added a whopping 150,000 jobs in January.

Meanwhile, more Canadians were working or looking for work as 153,000 people joined the labour force.

Royce Mendes, Desjardins’ head of macro strategy, said strong job numbers suggest interest rates are either not high enough or haven’t had enough time to affect the economy more broadly.

“At this point, it’s unclear what the appropriate reaction from the Bank of Canada is. But it certainly raises the odds that they may have to reengage with rate hikes this year,” Mendes said.

With the job market still tight, the country’s unemployment rate held steady at five per cent, hovering just above the record low of 4.9 per cent reached in the summer.

The Canadian economy has been on an upward trend with employment since September, adding a total of 326,000 jobs.

That’s despite forecasters anticipating the higher cost of borrowing will slow the economy down significantly this year and affect employment levels.

At its Jan. 25 decision, the central bank indicated that it plans to stop raising interest rates for now, allowing time for higher interest rates to work their way through the economy.

But the Bank of Canada stressed the pause was conditional, leaving the door open for more rate hikes if inflation proves to be stubborn.

In January, Statistics Canada said job gains were made across sectors in the economy. Wholesale and retail trade experienced the largest gains to employment, adding 59,000 jobs, followed by 40,000 jobs added in health care and social assistance.

Most jobs added to the economy were full-time, while people aged 25 to 54 drove the gains.

In a client note, TD director of economics James Orlando called Friday’s report a “blowout.”

“The fact that gains were concentrated in full-time jobs in the private sector, alongside more people working more hours, makes this an even more impressive report,” Orlando wrote.

The job gains also come at a time when tech and retail layoffs are grabbing headlines.

But Brendon Bernard, a senior economist with hiring website Indeed, said layoffs regularly happen and don’t necessarily influence overall job numbers.

“Individual companies really don’t move the needle on these aggregate nation-wide employment figures,” said Bernard.

The Canadian job numbers for January coincide with similar strength in the U.S. economy, which added 517,000 jobs last month.

With the labour market running hot, wages have also been rising, though at a slower pace than inflation. In January, wages were up 4.5 per cent on a year-over-year basis, growing at a slightly slower pace than in December.

The slower wage growth partly reflects relatively high average wages in January 2022 as COVID-19 restrictions caused job losses in lower-paying sectors.

Revisions to labour force survey data suggest wage growth peaked at 5.8 per cent in November.

Since March, the Bank of Canada has raised its key interest rate eight consecutive times, bringing it to 4.5 per cent. That’s the highest it’s been since 2007.

Typically, higher interest rates cause businesses and people to pull back on spending. As spending slows and sales fall, businesses may alter hiring plans.

As the central bank remains laser-focused on bringing down the country’s inflation rate, which stood at 6.3 per cent in December, it’s insisted the tight labour market is a sign of an overheated economy that’s fuelling inflation.

The central bank is hoping to see easing in the labour market, something it says is necessary for inflation to come down to its target of two per cent.

While economists generally note employment is the last indicator to turn during an economic slowdown, the labour market has been surpassing most economists’ expectations.

The Bank of Canada is aiming for a “soft landing,” where inflation falls without the onset of a serious economic downturn.

And although the economy is holding up better than expected, Mendes said it’s too early to say whether the Bank of Canada will pull off the soft landing.

“I think higher interest rates still need time to work their way through the economy more fully before we can say that we’re out of the woods in terms of the potential for a recession.”

This report by The Canadian Press was first published Feb. 10, 2023.

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Quick Quotes: What Liberal MPs have to say as the caucus debates Trudeau’s future

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OTTAWA – Here are some notable quotes from Liberal members of Parliament as they headed into a caucus meeting Wednesday where they are set to debate Prime Minister Justin Trudeau’s leadership.

Comments made after the caucus meeting:

“The Liberal party is strong and united.”

Prime Minister Justin Trudeau

———

“Justin Trudeau is reflecting and he’s standing strong and we’re standing strong as a Liberal party.”

“We as a party recognize that the real threat here is Pierre Poilievre and that’s what we’re fighting for.”

“Trudeau has made very clear that he feels he’s the right choice but he appreciates all of what is being said because he’s reflecting on what is being done across Canada. I respect his decision, whatever that may be.”

Charles Sousa, MP for Mississauga—Lakeshore

———

“We had some open and frank discussions. People are relentlessly focused on serving Canadians and win the next election. This was really a rallying call to win the next election.”

Industry Minister François-Philippe Champagne, MP for Saint Maurice—Champlain

———

“I don’t know how many people spoke, well over 50 I’m sure. They came at this from all angles and now (we’ve) got to go back and process this.

“We’re on a good path.

“It was very respectful. You know, caucus has always had the ability to get into some tough conversations. We did it again today and it went extremely well. Where we land? Who knows? You know we have to go and really process this stuff. But one thing that is absolutely, you know, fundamental is that we are united in the fact that we cannot let that creature from the Conservative party run the country. He would ruin things that people greatly value.”

Ken Hardie, MP for Fleetwood—Port Kells

———

Comments from before the caucus meeting:

“There’s a — what would you call it? Some palace drama going on right now. And that takes us away from the number 1 job, which is focusing on Canadians and focusing on the important policies but also on showing the really clear contrast between our government, our party and Pierre Poilievre.”

Randy Boissonnault, Employment Minister, MP for Edmonton Centre

———

“We’re going to go in there and we’re going to have an excellent discussion and we are going to emerge united.”

Treasury Board President and Transport Minister Anita Anand, MP for Oakville

———

“I think caucus is nervous because of the polling that has been constantly going down in favour of Liberals, and there’s a lot of people who do want to run again. I’m not running again, although I already told the prime minister that. But there are people there that want to run again and they’re nervous because of what polls are saying.”

“He has to start listening.”

Ken McDonald, MP for Avalon

———

“We’re going to have a good caucus meeting. MPs should be free to air their perspectives, I’m sure they will, and we’ll come out of it united.”

Peter Fragiskatos, MP for London North Centre

———

“I have to read the room. There’s all sorts of wheels within wheels turning right now. I’m just going to go in there, I’m going to make my mind a blank and just soak it all in.”

“I’m not going to say anything about (the prime minister) until I have my say in there.”

Ken Hardie, MP for Fleetwood—Port Kells

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“I wish there was a mechanism for it, yes,” he said, responding to whether he wanted a secret ballot vote in caucus to determine Trudeau’s leadership.

Sean Casey, MP for Charlottetown

———

“The prime minister will always be on my posters and he is welcome in Winnipeg North any time.”

Kevin Lamoureux, MP for Winnipeg North

———

“Absolutely I support the prime minister.”

Yvonne Jones, MP for Labrador

———

“When you look divided, you look weak.”

Judy Sgro, MP for Humber River—Black Creek

———

“I think Pierre Poilievre is absolutely beatable, he’s ripe for the picking with the right vision, the right leadership and the right direction for our party. The Liberal party is an institution in this country. It’s bigger than one person, one leader, and it’s incumbent on us as elected officials to make sure we put the best foot forward.”

Wayne Long, MP for Saint John—Rothesay

This report by The Canadian Press was first published Oct. 23, 2024.



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With Liberal election win, First Nations in N.B. look forward to improved relations

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FREDERICTON – Chief Allan Polchies says he is excited about New Brunswick’s new Liberal provincial government.

Polchies, of St. Mary’s First Nation, says he looks forward to meaningful dialogue with premier-designate Susan Holt after years of tense relations with the outgoing Progressive Conservatives under Blaine Higgs.

He is one of six Wolastoqey Nation chiefs who have filed a land claim for a significant part of the province, arguing treaty rights have not been respected by corporations and governments, both of which have exploited the land for hundreds of years.

The December 2021 court challenge has been a sore point between Indigenous Peoples and the Higgs’s government.

Eight Mi’kmaw communities are also asserting Aboriginal title to land in the province, and they say they hope to work with Holt and her team on “advancing issues that are important to our communities.”

Holt’s campaign didn’t give details on the Liberal government’s position on the Indigenous claims, but she has said she wants to rebuild trust between the province and First Nations.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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Abdelrazik tells of despair when Ottawa denied him passport to return home from Sudan

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OTTAWA – Abousfian Abdelrazik told a court today about the roller-coaster of emotions he experienced during the tense days of early 2009 when he awaited the green light to return to Canada from Sudan.

The Sudanese-born Abdelrazik settled in Montreal as a refugee and became a Canadian citizen in 1995.

During a 2003 visit to his native country to see his ailing mother, he was arrested, imprisoned and questioned about suspected terrorist connections.

Abdelrazik says he was tortured during two periods of detention by the Sudanese intelligence agency.

He is suing the federal government, claiming officials arranged for his arbitrary imprisonment, encouraged his detention by Sudanese authorities and actively obstructed his repatriation to Canada for several years.

In March 2009, he made arrangements to fly home to Canada and asked Ottawa to issue him an emergency passport, but his hopes were dashed — at least temporarily — when the request was turned down.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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