Canada just posted the biggest monthly job loss in a decade
Canadians are a little taken aback by the latest labout report from Statistics Canada, which shows that employment just dropped the most it has in one month since 2009.
Unemployment across the country last month hit 5.9 per cent — compared to 5.5 per cent in October — with 71,000 jobs lost.
This is completely contrary to what economists and the Bank of Canada had expected, and stands in stark contrast to similar data from the U.S., which showed massive job growth south of the border, with upwards of 250,000 jobs created in November.
Really awful jobs report from Canada - here full-time employment change was -32.8K and part-time was -38.4K. Unemployment rate rose to 5.9% versus 5.5% expected ^FR— FOREX.com (@FOREXcom) December 6, 2019
Dominion Lending chief economist Sherry Cooper called the numbers "shocking and disappointing," as well as unexpected, when speaking with BNN Bloomberg.
"It sure does bode ill for the Bank of Canada's belief that the Canadian economy is very resilient," she said in an interview with Bloomberg's Jon Erlichman, pointing out the the Bank made the decision not to cut interest rates earlier this week, an indication that the economy is healthy.
USA jobs report: +266k vs. estimate of +180k.— Matt Lanza (@mattlanza) December 6, 2019
Canada jobs report was expected to be +10k and ended up -71k.
And people say meteorologists are bad?
The most jobs lost were in the private sector, particularly in public administration (which could be due to election-related hiring), manufacturing, goods and service producing industries and natural resources. Agriculture jobs were slightly up.
There is some speculation that the recent CN Rail strike and temporary jobs related to the federal election could have been factors in the recent statistics, but many online are blaming Trudeau for the country's weak economic conditions.
Congrats #Canada & #trudeau Government. @JustinTrudeau job report, I expect to see a trend here, only getting worse. Ive been saying this ALL year!!! Canada is DONE!!!! Imagine if we stripped out the bloated housing market in Vancouver and Toronto. Holy would #'s talk!!!!— thepbay (@pbay08) December 6, 2019
"A single report is never to be taken as the be all and end all," Cooper said to Bloomberg. "But this isn't a single report because the October number was weaker than expected as well... you certainly can't ignore this."
Join the conversation Load comments