B.C.’s labour market is showing few signs of getting bogged down by global trade uncertainty.
The province added 13,000 jobs to the economy in May—the third straight month of gains, according to data released Friday from Statistics Canada.
Despite those gains, the province’s unemployment rate increased 0.2 percentage points to 6.4 per cent as more people entered the labour market looking for work.
Momentum was carried by full-time work (+15,700 jobs) rather than part-time work (-2,800 jobs).
Sector-specific gains were carried by construction (+11,200 jobs), technology (+11,100 jobs) and health care (8,700 jobs).
The most notable losses were in accommodation/food services (-9,000 jobs), transportation/warehousing (-5,700 jobs) and information/culture/recreation (-4,800 jobs), the category associated with the film and TV sector.
Canada, meanwhile, added 8,800 jobs as the national unemployment rate grew 0.1 percentage points to seven per cent.
“Overall, our ranking gives this [jobs] report a passing grade, largely due to the strength in private sector and full-time jobs,” said BMO chief economist Douglas Porter in a note to clients, referring to the national data.
“But the persistent rise in the jobless rate is a loud warning bell. The main point is that slack is still growing in the labour market, suggesting that the Bank of Canada may not be done cutting rates just yet.”
TD senior economist Leslie Preston said the impact of U.S. tariffs is clearly evident in industry and regional patterns.
“On Wednesday, the Bank of Canada opted to wait and see how tariffs would impact the Canadian economy, while also weighing recent hotter than expected inflation readings,” she said in a note to clients.
“May's jobs report puts another mark in the economic weakness tally. We think this will ultimately lead to further rate cuts from the Bank of Canada.”
