Statistics Canada reported Friday that despite the new jobs, the jobless rate held steady at 5.5 per cent as more people join the work force, too.

Canada’s adult population increased by just over 82,000 people during the month, of which almost 72,000 are considered to be in the labour force — meaning they are of working age, and actively looking for employment.

The job gain was about twice as many as economists were expecting for the month, but most of them — 48,000 — were of the part-time variety.

Tu Nguyen, an economist with accounting and consultancy firm RSM Canada, says the surge in part-time work could be tied to the ongoing influx of immigrants, as “newcomers might not find full-time work right away.”

“To keep the unemployment rate constant, approximately 50,000 additional jobs per month are needed given the immigration-driven population growth,” she said. “September’s numbers are on track to achieve this and are representative of a more balanced job market where employers are able to find talent when needed.”

The job gains were also concentrated in one sector, education, which added 66,000 jobs in the month where schools are back in session.

Economist Royce Mendes with Desjardins says that apparent hiring binge should be taken with a grain of salt as it “offset an unusual decline [of 44,000 eduction workers] in August, which was tied to the seasonal adjustment process used by Statistics Canada.”

Compared to where things stood in May when the previous school year wound down, the education sector currently has 26,000 more workers than it did then.

September’s hiring surge brings the two-month total to more than 100,000 workers, but Mendes says that headline figure belies some weakness beneath the surface. Despite having more workers, the total number of hours worked was flat during the month which “takes some shine off of the headline,” Mendes said.

“While taken together the past two months have clearly shown significant strength in hiring, the September reading is weaker than the headline suggests.”

The strong jobs number increased the odds of another rate hike at the end of the month, as trading in investments known as swaps that bet on future rate moves imply there’s now almost a 50/50 chance of one. 

Last week, markets were pricing in less than a one in three chance.

Pockets of strength

Economists pointed out some weaknesses beneath the headline of the strong jobs gain, but that’s not to suggest the job market is slumping, either. 

Hourly wages keep inching higher, up to $34.01 an hour for salaried workers. That’s up by $1.63 or five per cent since last year and a faster annual pace than observed in August.

“Even as the job market has cooled, labour demand remains solid, and wage growth remains above inflation,” Nguyen said. “The strikes and labour disputes this year have shown that some workers are still demanding better pay and are getting [it].”

While the surge in educational workers might prove to be a blip, there are many sectors of the economy seeing sustained demand for workers. The job market in transportation and warehousing is booming; the sector added 18,000 workers during the month and almost 80,000 over the past year.

Dave Zavitz, the chief administrative officer with Canada Cartage, says he can’t find enough people to keep up with demand.

“There’s a big hole in the truck driving industry right now,” he told CBC News in an interview. “We’re 20,000 jobs short.”

With 4,000 workers, Canada Cartage is one of the oldest and biggest trucking firms in Canada, with more than 100 years in business and a name that harkens back to the age of horses and carts. Zavitz says his biggest problem right now is finding enough new young people to replace the surge of older workers who are retiring.

Nick Blackbird, a trucker with 37 years experience who’s also a trainer and instructor says demand for truckers is far outpacing the supply of them

“I was a Teamster for years and we warned about this in the 80s but no one listened,” he told CBC News in an interview. “There is a shortage, but I would go one step further — there’s a chronic shortage of guys who know what they’re doing.”

Source: CBC News

The post Canada Added 64,000 Jobs in September, Led by Seasonal Surge in Education Workers appeared first on The Victoria Post.

As more Canadians take up creative side gigs to make ends meet, a new survey suggests some may not fully understand the tax implications of having a side hustle.

The survey, conducted by H&R Block Canada, found that 44 per cent of Canadian gig workers are willing to risk the consequences of not claiming all their income this tax season as costs of living continue to rise.

“While it’s easy to think that smaller amounts may go unnoticed, by not declaring all income to the Canada Revenue Agency (CRA), Canadians face the risk of not just having to pony up for the full amount of taxes owing if they’re audited – but they’ll also be charged interest and could face substantial penalties if it’s discovered,” said Yannick Lemay, learning program lead and tax specialist for H&R Block Canada, in a press release.

For 74 per cent of Canadian gig workers, these kinds of jobs are in addition to their primary source of income, such as their full time job.

• These are the new tax brackets for 2023
• What you need to know about interest and penalties if you file your taxes late
• Here’s what you need to know to get a head start on filing your 2022 taxes
• ‘Key to succeeding’: Tax season tips from an expert
• Before you do your taxes, take note of these tax credits and deductions you may not have known about
• It’s possible to have ‘too much’ in your RRSP: Tax expert
• What you need to know about contributing to your TFSA this year
• Getting divorced? The top tax considerations to take into account
• Selling a home? How to know if you qualify for a capital gains exemption

And while the gig work industry may be growing, one in five of gig workers (23 per cent) said they don’t have a strong understanding on how this kind of income needs to be filed at tax time.

Despite the fact that failing to claim all income at tax time is considered tax evasion and is a criminal offense, nearly half indicated on the survey that they are willing to risk not claiming the income from their side hustles.

It’s a concerning statistic, considering the consequences of tax evasion could mean having to pay the full amount of taxes owing, plus interest and any civil penalties assessed by the CRA, being fined up to 200 per cent of the taxes evaded, or even running the risk of a jail term of up to five years.

“The good news is there are literally hundreds of potential deductions and expenses that can be claimed; many of which put money back into your pocket,” said Lemay.

“The gig workforce is incredibly diverse, so navigating tax-related benefits can be complex. What’s important is having a full understanding of your specific tax situation, so you don’t inadvertently leave money on the table when filing your taxes.”

The survey also found that 85 per cent of Canadians are worried their income can’t keep up with the rising inflation, and 63 per cent of gig workers flag inflation as a major motivator to pick up a gig.

In fact, in the last year there’s been a surge in those working in the gig economy. In 2023, 28 per cent said they had taken up a gig job, compared to 13 per cent in 2022.

Gig working in Canada could continue to grow as another 15 per cent of survey respondents said they are considering picking up a side hustle in the gig economy in the future due to rising inflation affecting basic costs of living such as groceries and monthly rent.

According to the Gig Economy Data Hub, gig work classifies as income-earning activities outside of standard, long-term employer-employee relationships. Examples of these jobs include construction work, Uber driving, freelance work, or dog walking.

Source: CTV News

The post Almost Half of Canadian Gig Workers Not Willing to Declare All Income at Tax Time, Survey Finds appeared first on The Victoria Post.