How will April job numbers impact interest rates?

For HR professionals, this surge in part-time employment may indicate a potential shift in the labour market. BMO chief economist Douglas Porter highlighted that the rise in part-time positions might reflect underlying economic weaknesses.

“In other words, a lot of the new entrants would actually like a full-time job, but really all they can get is part-time,” Porter stated, as cited by the Toronto Star.

Mixed signals from labour market

As economists have been anticipating a potential reduction in the central bank’s policy rate in June or July, the latest employment data introduces uncertainty. The Bank of Canada, encouraged by progress on inflation, has hinted at a possible rate cut. However, financial markets are now less certain this will occur, according to the Toronto Star, given the mixed signals from the labour market.

Stanford remains optimistic about the rate cuts, suggesting that the current employment growth coupled with falling inflation should not deter the Bank of Canada’s decision.