Dailyreport
Canadian unemployment hits 8-year high in November.
More people looked for work in November, raising Canada’s unemployment rate to 6.8%, an eight-year high, the national statistical agency said Friday.Canadian unemployment hits 8-year high in November.
Statistics Canada said this was the highest level since January 2017, excluding 2020 and 2021, when COVID-19 lockdowns severely impacted work.
After a flat October, employment rose 51,000. Full-time and public sector gains dominated, it said.
The relatively large jump in the jobless rate was due to a massive labour force increase, not job losses, economists said.
“Even with the messiness of today’s employment report, the economy continues to add jobs, reinforcing our view that the labour market is on solid foundations,” TD Economics analyst James Orlando wrote.
He and other analysts expect the Bank of Canada to cut its key lending rate by at least 25 basis points next week, following a larger reduction in October.
Canada cut its benchmark rate in early June after almost a year at 5.0 percent, the highest in two decades.
It was the first Group of Seven advanced economy to cut rates after a pandemic-driven inflationary period.
Canada’s last cut lowered it to 3.75 percent.
Wholesale and retail trade, construction, professional, scientific, and technical services, educational services, and accommodation and food services all added jobs in November, according to Statistics Canada.
Manufacturing, transportation, warehousing, and natural resources fell.
