The unemployment rate in Canada has reached a record low presently compared to the last four decades. It is 5.8% which is the same as it was in 1976. The reason being a sudden rise in the number of construction projects undertaken.
According to a report by Statistics Canada, among the 32,300 jobs that have been created in the month of March alone, more than half of them are in the construction field. With the increase in jobs, there is also an increase of 3.2% in wage gains, in the first quarter of 2018.
Last year, the economic position of Canada was strong which prompted the boom in hiring. The rise in vacancies is consistent with the market demand and the economist predicts a normal gain in the range of 15000 to 20000 this year. Last year it was almost double.
David Madani, senior economist of Capital Economics stated to its investors that the labor market still has some ability to recover in spite of tough housing regulations and unpredictable trading.