There was little momentum for the B.C. labour market going into May after a popping jobs report a month prior.
The province lost 7,900 jobs last month compared with gains of 23,000 jobs in April, according to data released Friday by Statistics Canada.
This delivered a blow to the employment rate, which jumped 0.6 percentage points to 5.6 per cent cent.
Canada added 26,700 jobs nationally, while the unemployment rate rose 0.1 percentage points to 6.2 per cent, indicating many are departing the labour market altogether.
B.C. saw the biggest losses in the information, culture and recreation category (-10,600 jobs). This category is associated with the film and TV sector, which is still reeling from the Hollywood strikes that paralyzed much of B.C.’s industry during job action last year.
Notable gains were felt in manufacturing (+4,600 jobss) and finance, insurance and real estate (+3,900 jobs).
"This mixed bag doesn't really move the needle on the Bank of Canada Rate-o-Meter," BMO chief economist Douglas Porter said in a note, referring to the national data.
“What may have a bit more sway on the outlook for the Bank is today's surprisingly robust U.S. payrolls report, which has again pushed back Fed easing prospects. Ultimately, though, policy will be driven by domestic factors and the next two [consumer price index] reports will shape the July rate decision.”
RBC assistant chief economist Nathan Janzen said the Bank of Canada "won't regret cutting interest rates this week" based on Friday's jobs report that shows a gradual cooling in the national labour market. "There is room to cut further without stoking a resurgence in price growth," he said in a note.
TD senior economist Leslie Preston said in a note she expects a further cut of 50 basis points by the end of 2024, bringing the key rate down to 4.25 per cent.
