Jun 11, 2019

Canada's deceptively low unemployment rate

Dion Rabouin
Expand chart
Data: Statistics Canada; Chart: Axios Visuals

The Canadian economy added 27,700 jobs in May, bringing the year-over-year job gains to 453,100, and pushing the unemployment rate to 5.4%, the lowest level since 1976.

But, but, but: Canada's economy grew at an annualized pace of just 0.4% in the first quarter, following 0.3% growth in the fourth quarter of 2018, giving the country its weakest back-to-back quarters of growth since 2015.

  • Canada's household savings rate fell to 1.1% in the first quarter. That's 5.6% below the U.S. savings rate, the widest the disparity has been since the 1970s.
  • Canada's ratio of debt to income reached 176% in the fourth quarter, among the highest in the developed world, and 24 percentage points higher than the U.S. rate.

On the bright side: The Bank of Canada forecasts a rebound in the second half of the year with Canada’s GDP expected to grow by 1.2% this year, wages are rising and consumers are growing less pessimistic about the economy.

Go deeper: 2018's escalating exodus of U.S. tech workers to Canada

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Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 p.m. ET: 1,475,976 — Total deaths: 86,979 — Total recoveries: 317,372 — Map.
  2. U.S.: Total confirmed cases as of 3 p.m. ET: 404,352 — Total deaths: 13,829 — Total recoveries: 22,775 — Map.
  3. States latest: New York Gov. Andrew Cuomo issued an executive order allowing New Yorkers to vote by absentee ballot for June 23 primaries.
  4. Federal government latest: The U.S. has begun to see "glimmers of hope" despite its highest recorded number of deaths in 24 hours, Dr. Anthony Fauci said.
  5. World updates: WHO Director-General Tedros Adhanom Ghebreyesus urged countries should put politics aside "if you don’t want to have many more body bags.”
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  7. What should I do? Pets, moving and personal health — Answers about the virus from Axios experts — What to know about social distancing — Q&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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