Canadian Economy Unexpectedly Shed Jobs in November -- Update
December 06 2019 - 9:06AM
Dow Jones News
By Kim Mackrael
OTTAWA -- The Canadian economy unexpectedly shed jobs in
November and the unemployment rate rose to its highest level in
more than a year, marking a sharp retrenchment for a jobs market
that has largely been a bright spot for Canada.
Canada's labor market shed a net 71,200 jobs in November on a
seasonally-adjusted basis, Statistics Canada said Friday. Market
expectations were for a gain of 10,000, according to economists at
BMO Capital Markets.
The November data follows a small decline in the previous month
and notable advances in August and September. Despite the November
decline, job growth was still up 292,900, or 1.6%, on a
year-over-year basis, with most of the net gain in the full-time
category.
The jobless rate moved up to 5.9% in November, its highest level
since August 2018. Market expectations were for the unemployment
rate to remain unchanged at 5.5%. When using U.S. Labor Department
methodology, Canada's unemployment rate was 4.7% in November.
On a more positive note, average hourly wages surged on an
annual basis by 4.5%, after advancing 4.3% in each of the previous
two months. At the beginning of the year, wage growth on an annual
basis was close to 2%.
The November employment report comes two days after the Bank of
Canada said it would keep its key interest rate on hold at 1.75%,
citing early evidence that the global economy is stabilizing. A
central bank official said Thursday that the Canadian economy's
resilience -- including a healthy jobs market -- has allowed the
Bank of Canada to chart its own course by keeping rates steady
while others have eased policy.
In November, full-time employment fell by 38,400, while
part-time employment dropped by 32,800. The ranks of the
self-employed -- often independent contractors or freelancers --
declined by 18,700. The private sector lost 50,200 jobs in the
month, and public-sector organizations shed 2,300 workers.
The Statistics Canada report said the bulk of the November job
losses were in the manufacturing sector, which shed a net 27,500
jobs, and public administration, down 24,900 positions. On a
year-over-year basis, employment in manufacturing was little
changed, while employment in public administration was up
48,500.
Write to Kim Mackrael at kim.mackrael@wsj.com
(END) Dow Jones Newswires
December 06, 2019 09:51 ET (14:51 GMT)
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