TORONTO (Reuters) - Canada’s economy lost a net 71,200 jobs in November, in both full-time and part-time work, Statistics Canada said on Friday. The jobless rate climbed to 5.9%. Employment in the goods producing sector fell by a net 26,600 jobs, almost entirely in manufacturing. The services sector lost a net 44,400 positions, mostly in public administration, as well as accommodation and food services. Analysts say many of those public administration jobs were related to the recent federal election.
Market reaction: CAD/
DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS AT SCOTIABANK:
“All around miss. Weak details reinforce the headline miss. We have gotten two back-to-back weak numbers out of Canada... and so at the margin it is convincing evidence that we may be at a weakening spot in the labor market.
“Generally speaking there is very weak global data and the Canadian numbers are another step in that direction.”
“It’s an ugly report for the most part. Employment is down pretty substantially in November. Those numbers are pretty volatile. We’re still up significantly on a year-over-year basis, so the employment trend has still been OK, but the jump in the unemployment rate is surprising. It’s been a while since we had a four-tenths increase in unemployment in one month. I think the silver lining is still wage growth, which actually ticked a little higher for all employees and held steady at 4.5%for permanent employees.
“Labor markets have been really strong, so even a pretty ugly report probably won’t be enough to really convince them that labor market trends have changed significantly, but if we saw a repeat of this labor market performance going forward, I think (the Bank of Canada) would start rethinking their strategy.”
ROYCE MENDES, SENIOR ECONOMIST AT CIBC CAPITAL MARKETS, IN A NOTE:
“Canada’s labor market took more than a breather in November, with an apparent massive decline in employment. Headline jobs fell 71,000 during the month. While roughly 20,000 of that drop was due to a reversal of temporary federal election related hiring, the rest of the weakness was broadly based by industry and by type of employment.
“Overall, a weak set of numbers, something that could have the Bank of Canada rethinking its on-hold stance if it were to continue.”
Reporting by Fergal Smith and Moira Warburton in Toronto,; Editing by Steve Scherer