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Jobless Rate Hits New Record Low in Canada, Wages Accelerate

  • Unemployment falls to 5.1%, lowest since at least 1976
  • Tightening labor market is fueling bets on rate hikes
A worker laminates signs at manufacturing shop in Langford, British Columbia on May 18.

A worker laminates signs at manufacturing shop in Langford, British Columbia on May 18.

Photographer: James MacDonald/Bloomberg
Updated on

Canadian employers continued hiring at a strong pace last month in an increasingly tight labor market, driving down the unemployment rate to a record low and fueling a sharp acceleration in wage gains.

The economy added 39,800 jobs in May, Statistics Canada reported Friday, surpassing the 27,500 gain anticipated by economists. The nation’s jobless rate fell to 5.1%, from 5.2%, bringing it to the lowest in data going back to 1976.