According to Statistics Canada, employment rose by 106,500 in April 2019. This is much higher than the economists’ prediction of 12,000 job gains and the highest one-month increase since 1976.
The unemployment rate dropped to 5.7%, which is close to a four-decade low.
The April job gains were broad-based – across demographics, regions and industries. Both service providers and goods producers recorded gains and most of the gains were in the private sector and full-time. For the past 12 months, a total of 426,400 jobs have been added, which is the highest one-year increase since 2007.
There are other indicators that the Canadian economy is recovering after stalling for the past six months. The value of the Canadian dollar increased by 0.7% and government bond yields rose to 1.62%. The export sector and the housing market also stabilized and there were indications of increased consumer spending and borrowing. Some of the factors negatively affecting the economy have begun to reverse. These include global trade tensions, high interest rates, cooling housing markets, volatile financial markets and falling oil prices.